The Ethereum market has recently seen a notable shift, with significant outflows from centralized exchanges sparking discussions about the cryptocurrency’s short-term trajectory.
Amid this, Ethereum has registered a 2.4% decline over the past 24 hours with a current trading price of $3,858, marking a 21.1% decline from its 2021 all-time high of $4,878.
Binance Ethereum Withdrawals Surpass 7.8 Million ETH
Facts from CryptoQuant reveals that approximately 20.8 million ETH have been withdrawn from centralized exchanges over the past two months, a trend reminiscent of the 2021 bull market. Binance has played a central role in this movement, accounting for more than 7.8 million ETH, which represents 33-39% of the total outflow.
These outflows could indicate that investors are accumulating ETH for long-term holding or staking, as suggested by CryptoQuant analyst Crazzyblockk. The analyst added:
These significant outflows from Binance indicate the platform’s continued influence on the cryptocurrency market, especially in balancing supply and demand for Ethereum.
According to Crazzyblockk, Binance’s influence is especially evident given its global user base of 250 million and a record $21.6 billion in deposits this year.
The substantial outflows from Binance are consistent with bullish market sentiment, as large-scale withdrawals are often a sign of confidence among investors. These moves suggest that Ethereum holders are taking their assets off the exchanges.
This reduction in the available supply of ETH on exchanges could put upward pressure on prices, should demand remain consistent or grow.
Etheruem Market Performance and Outlook
Ethereum has thus far struggled to post a significant price increase since the crypto market’s last bull run began months ago.
Despite Bitcoin posting consistent gains and recording new all-time highs almost every month, Ethereum has not lacked enough upside momentum to push its price past the $4,000 mark.
It’s worth noting that this sluggish performance of Ethereum comes amid positive developments in the crypto space, including the recent news from Deutsche Bank, Germany’s largest lender. reportedly is working on its own layer-2 (L2) blockchain on Ethereum using ZKsync technology.
JUST IN: Deutsche Bank is building its own Layer-2 on Ethereum – Bloomberg pic.twitter.com/5O5K3R1fRg
– Radar
(@RadarHits) December 18, 2024
Regardless of such news, ETH has seen a slight increase of 2.3% over the past week, a lower performance compared to Bitcoin’s 5% increase over the same period.
According to analysts, Ethereum could likely still see a further correction in its price as bearish signals recently formed on the chart suggesting a potential decline towards 3,400.
$ETH has formed a bearish double top, with the RSI showing bearish divergence and a MACD crossover confirming the trend.
A short-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) December 18, 2024
Featured image created with DALL-E, Chart from TradingView
