Ethereum’s Mass Exchange Outflows Persist Amidst Price Fluctuations, Will This Trigger A Rebound?

The price of Ethereum has been struggling with bearish pressure for quite some time now, but most investors might be considering the waning price performance as a key investment opportunity. While the altcoin‘s price has faced setbacks, investors are choosing to hold their coins rather than sell them to cut losses.

Significant Ethereum Withdrawn From Crypto Exchanges

Ethereum’s slight upward momentum was backed by bullish sentiment among investors in the last few days. Seasoned technical expert and trader Ali Martinez reported in a recent X post that ETH holders are withdrawing their coins from crypto exchanges at an accelerated pace, signaling a shift in investors’ behavior.

Such a massive surge in exchange outflows reflects traders’ choice of self-custody holdings, indicating their confidence in ETH’s performance in the long term. As these investors withdraw their coins from crypto exchanges, the development may lessen selling pressure, allowing the asset to gain upside momentum.

Data from Ali Martinez shows that crypto exchanges have seen more than 1 million ETH withdrawn in the past week. During this period, investors appear to be accumulating more ETH than short-term selling in the midst of price fluctuations as seen among whales.

Ali Martinez recently spotted notable buying pressure, caused by whale investors holding more than 10,000 ETH. Onchain data shows that these big players’ wallet addresses have increased by about 2.30% since the beginning of the month.

ETH Exchange Withdrawals Make History

Historically, large exchange outflows coinciding with heightened accumulation phases have led to future price stability or upward momentum. Considering past occasions, this trend could impact Ethereum’s price direction in the upcoming weeks if it persists.

The over 1 million ETH exchanges’ withdrawal in a week was hit as a result of its recent historic milestone of about 224,410 ETH removed from exchanges in a single day, particularly between February 8 and 9. Leading market intelligence and on-chain data platform Santiment highlighted that this was the highest daily movement of net coins out of recognized exchange wallets in the last 23 months. 

Although it is a long-term indicator, Santiment believes the development is encouraging for Ethereum’s faltering price performances. When assets leave exchanges, it usually indicates that investors are confident and willing to hold on for the long haul. 

There is also a declining chance of future significant selloffs due to the decreasing quantity of coins that are available for public sale. Meanwhile, Santiment warns that Ethereum’s performance in 2025 will remain significantly dependent on Bitcoin’s ability to stay afloat and attempt to get back to all-time high levels.

At the time of writing, ETH was trading at $2,601, displaying an almost 5% decline in the past day. While the price continues its descent, Titan of Crypto predicts that the altcoin might be gearing up for its most hated rally. This is due to sentiment reaching its peak FUD and few people demonstrating faith in ETH. According to the expert, ETH’s “comeback will be legendary.”

Featured image from Unsplash, chart from Tradingview.com