- Ethereum experienced its highest daily exchange outflow in two years, as 224,410 ETH were sent off exchanges, lessening short-term selling pressure.
- The total ETH supply on exchanges dropped to 9.63 million, the lowest since August 2024, reflecting investor accumulation trends.
- Despite the outflows, Ethereum’s price remains volatile, relying on outside market forces and whether Bitcoin can sustain its momentum.
Ethereum saw a significant flow of 224,410 ETH out of exchanges in 24 hours between February 8 and 9. The transfer, worth around $604.8 million, is the largest net outflow in almost two years. In the past, these kinds of moves have pointed to accumulation trends, with investors choosing long-term holding strategies.
Massive Ethereum Outflow from Exchanges
Santiment reported a historic milestone as Ethereum experienced its largest single-day net outflow since March 2023. The withdrawal of 224,410 ETH suggests that investors are shifting assets to private wallets, reducing the immediate availability of ETH for sale. This move could ease short-term selling pressure, potentially influencing market stability and future price trends.
The total Ethereum supply on exchanges has now dropped to 9.63 million ETH, the lowest level since August 2024. A falling exchange balance usually points to a shift towards long-term holding, which would support future price increases if demand remains strong.
Ethereum’s Price Action and Market Reaction
Ethereum’s price is still volatile. At the time of writing, ETH was at $2,665.41 and has gained 0.51% over the last 24 hours but is still down 5.77% over the week.
Although reduced exchange balances typically support price growth, external factors may still influence Ethereum’s trajectory. The recent pullback suggests that some investors are securing profits, while others await stronger bullish confirmation before re-entering the market.
Future Outlook for Ethereum
If Ethereum’s exchange outflows continue at this pace, a supply squeeze could emerge, potentially driving prices upward. Historically, such trends have contributed to bullish momentum as fewer tokens become available for immediate sale.
Ethereum’s performance in 2025 will also heavily depend on Bitcoin’s price action. If Bitcoin remains stable and bounces back, then Ethereum could also follow a similar trend. Investors must closely watch exchange balances and market direction to assess the possibilities in the coming months.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
