The price of Ethereum has managed to hold above $2,000 even as increased volatility persists in the market. During the recent pullback, investor sentiment appears to be slowly shifting towards a bullish outlook, which is primarily indicated by notable ETH withdrawals from crypto exchanges, matching past key levels.
Stock exchanges experience massive Ethereum withdrawals
Following the sharp price decline, Ethereum’s on-chain supply momentum has now reached a milestone. This milestone takes place on ETH exchange reserves, which have seen one of their biggest drops in years.
In an article on social media platform X, CryptoRus revealed that the supply of ETH on crypto exchanges has fallen back to levels last seen in mid-2016. “It’s crazy when you think about the size of the ecosystem today,” CryptoRus added.
The significant drop in ETH on centralized platforms indicates that instead of making their coins easily available for sale, more investors are moving them into long-term storage, staking, or self-custody. Such a development often indicates a reduction selling pressure and a stronger long-term holder base.
Ethereum Investors show more notable bullish sentiment towards the altcoin than Bitcoin investors. While Bitcoin has recently returned to crypto exchanges, ETH has silently disappeared from these platforms. This behavior highlights a growing conviction in the altcoin’s short- and long-term prospects relative to BTC.
The majority of this ETH is neither lost nor abandoned. On the contrary, it belongs to investors, and they do not stay away. At the same time, over-the-counter (OTC) supply has also increased, but it still lags far behind compared to Ethereum’s total supply.
If OTC liquidity also dries up and ETH exchange balances remain as tight, price discovery will happen quickly rather than slowly. However, when demand returns to the market, there may not be enough ETH available to meet this desire.
Institutions are still buying more ETH under unfavorable conditions
Despite the current volatile landscape, institutional accumulation of Ethereum has continued and large companies like Bitmine Immersion hasn’t finished buying the dip. The leading public company recently made another ETH purchase that is making waves in the cryptocurrency community.
On chain shared data by market expert and investor Ash Crypto shows that Bitmine purchased around 20,000 ETH worth $41.08 million on Monday. This purchase implies that the major players display rrenewed confidence and bet on a potential rebound in the near future.
According to According to the expert, the company’s total ETH purchase last week was valued at $83.45 million. After the purchase, Bitmine’s ETH holdings soared to $9.19 billion, representing over 3.6% of the total ETH supply. Bitmine’s persistent purchase of ETH underscores the company’s unwavering goal of becoming the world’s largest Ethereum treasury company.
Featured image from Freepik, graphic from Tradingview.com
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