The Ethereum market has seen a notable shift recently, with significant outflows from centralized exchanges sparking discussions about the cryptocurrency’s near-term trajectory.
Amidst this, Ethereum recorded a 2.4% decline over the past 24 hours with a current trading price of $3,858, marking a 21.1% decline from its all-time high of $4,878 observed in 2021.
Ethereum withdrawals from Binance exceed 7.8 million ETH
Data from CryptoQuant reveals that approximately 20.8 million ETH was withdrawn from centralized exchanges over the past two months, a trend reminiscent of the 2021 bull market. Binance played a central role in this movement, accounting for more of 7.8 million ETH, representing 33-39% of total outflows.
These outflows could indicate that investors are accumulating ETH for holding or long-term staking purposes, as CryptoQuant analyst Crazzyblockk suggests. The analyst added:
These significant outflows from Binance indicate the platform’s continued influence on the cryptocurrency market, including balancing the supply and demand of Ethereum.
Notably, Binance’s influence is particularly evident given its global user base of 250 million and a record $21.6 billion in deposits this year, according to Crazzyblockk.
Substantial outflows from Binance align with bullish market sentiment, as large-scale withdrawals often signal investor confidence. These moves suggest that Ethereum holders are withdrawing their assets from exchanges.
This reduction in the available supply of ETH on exchanges may create upward pressure on prices, if demand remains constant or increases.
Etheruem Market Performance and Outlook
Ethereum has so far struggled to significantly increase its prices since the crypto market’s last rally began months ago.
Although Bitcoin has seen consistent gains recording new all-time highs almost every month, Ethereum does not have enough upward momentum to push its price beyond the $4,000 barrier.
It is worth noting that this lackluster performance from Ethereum comes amid ongoing positive developments in the crypto space, including recent news from Deutsche Bank, Germany’s largest lender. would have is working on its own layer 2 (L2) blockchain on Ethereum using ZKsync technology.
JUST IN: Deutsche Bank builds its own layer 2 on Ethereum – Bloomberg pic.twitter.com/5O5K3R1fRg
— Speed cameras
(@RadarHits) December 18, 2024
(@RadarHits) Regardless of this news, ETH saw a slight increase of 2.3% over the past week, underperforming Bitcoin with a 5% increase over the same period.
According to analysts, Ethereum could still likely see another correction in its price as bearish signals have recently formed on its chart, suggesting a potential decline to 3,400.
$ETH formed a bearish double top, with the RSI showing a bearish divergence and a MACD crossover confirming the trend.
A near-term correction could take it to $3,400, with major support at $3,200 and $3,000. #Ethereum #CryptoTrading #eth pic.twitter.com/iWaPh1vwrr
– crypto vulture trader
(@crypto_vulture1) Featured image created with DALL-E, chart from TradingView
