Ethereum withdrawals on Coinbase have surged, surpassing $1.2 billion, marking a record high. This increase in withdrawals indicates that large crypto investors, known as whales, are anticipating a price recovery in Ethereum. As a result, the balances of Ethereum on centralized exchanges have dropped to their lowest levels since 2016.
In the past few days, there has been a significant uptick in the withdrawal of Ethereum from exchanges. Analysts have noted that both small and large investors are participating in this trend, leading to the highest withdrawal volume of 2024. The focus has particularly been on Coinbase, the largest cryptocurrency exchange in the United States, where a substantial 336,000 ETH was withdrawn from wallets in just two days.
This surge in Ethereum withdrawals has not been limited to Coinbase alone, as other exchange addresses have also experienced a decline in their ETH balances. According to on-chain tracker Santiment, the total amount of Ethereum held in centralized exchange wallets has dropped by 8.6% in the past two weeks. This has caused exchange balances to reach their lowest point in eight years, dating back to 2016.
The withdrawal of Ethereum from exchanges is viewed as a bullish sign for the price of the cryptocurrency. It suggests that investors are opting to hold onto their Ethereum rather than sell it, which is positive for price appreciation. Analysts like Ash Crypto believe that with the upcoming introduction of Spot Ethereum ETFs in 2024, the price of ETH surpassing $10,000 is a realistic possibility.
Currently, the price of Ethereum is closely following the trend of Bitcoin, hovering above $3,500 after a recent dip below this support level. While there have been some losses on the weekly chart, the overall sentiment remains positive for Ethereum’s price trajectory.
In conclusion, the surge in Ethereum withdrawals on Coinbase and other exchanges is a reflection of investor optimism and a belief in the long-term potential of the cryptocurrency. As the market continues to evolve, these trends will likely have a significant impact on the price and adoption of Ethereum in the future.