Ethereum whales have continued to accumulate despite the current downtrend in ETH price, providing a bullish outlook for the second-largest crypto by market capitalization. Notably, ETH withdrawals from exchanges recently reached its highest level since October last year, totaling over $400 million.
Ethereum whales accelerate withdrawals from exchanges
Cryptocurrency analyst Arab Chain noted in a CryptoQuant Analysis that the increase in Ethereum withdrawals from exchanges reached its highest level since October. The analyst noted that the exchange net flow data over the past few days indicates a clear acceleration in withdrawal activity. This signals a change in the behavior of Ethereum whales, as demand exceeds supply.
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Arab Chain revealed that in all exchanges, the net outflows from Ethereum exceeded 220,000 ETH, marking the highest level of withdrawals since October last year. This suggests that Ethereum whales are moving their coins to private wallets or long-term storage protocols, a move the analyst says is often associated with accumulation phases or de-risking behavior.
Notably, daily net outflows on Binance reached nearly 158,000 ETH on February 5, the largest since August last year. Arab Chain said this confirms that a substantial portion of recent outflows have been concentrated on the most liquid exchange. From a price perspective, the analyst noted that Ethereum whale accumulation coincided with Trading ETH near the $1,800 to $2,000 range.
Therefore, these Ethereum whales may view these levels as attractive areas to hold or reposition amid this crypto market downtrend. Arab Chain added that the continued release of ETH from exchanges on this scale reduces immediate selling pressure and could provide short-term support to the ETH price, especially if the market regains momentum.
Ethereum Staking Hits New High
According to Token Terminal, Ethereum Staking exceeded 30% of the total supply, marking a new all-time high (ATH) in terms of stake ratio. Market commentator The Milk Route noted This means that 36.8 million ETH, or approximately $72 billion, is now locked, with nearly a million validators securing the network.
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The Milk Road further described this development as a sign of conviction in the Ethereum ecosystem, noting that these whales are ready to lock up $74 billion during a market downtrend. In particular, the staking output queue amounts to around 4.1 million ETH, which, according to the market commentator, is nothing compared to what is currently at stake.
Interestingly, it currently takes around 72 days to stake ETH, with staking demand at a new high. At the same time, Milk Road also noted that the obvious impact is a significant supply restriction, which serves as a bullish catalyst for the price of ETH.
At the time of writing, the Ethereum price is trading at around $1,965, down over the past 24 hours, according to data from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com
