ETH Exchange Outflow Soars: Bullish Signal?
Ethereum (ETH) has shown signs of renewed strength, with prices rising 2.8% in the past day. This follows a significant event: a 23-month high in ETH exchange outflows, suggesting growing investor confidence.
Record Ethereum Outflows
Data from Santiment reveals a substantial movement of ETH off exchanges. On February 8th and 9th alone, 224,410 ETH were withdrawn. This trend continued on February 10th, with a record-breaking 768.5k ETH leaving exchanges – the highest daily outflow in 23 months.
Source: Santiment
Such significant outflows generally indicate that investors are accumulating ETH, anticipating price appreciation. While not a guaranteed predictor, it reflects increased market confidence despite recent price consolidation.
Impact on ETH Price
The substantial exchange outflows have indeed correlated with a positive impact on ETH's price. At the time of writing, ETH trades at $2716. This represents not only a daily gain, but also a positive weekly trend.
Source: CryptoQuant
Source: CryptoQuant
Further supporting this bullish outlook is the declining exchange supply ratio, reaching a yearly low. This, combined with a positive Coinbase premium index throughout the week, indicates institutional accumulation.
Source: IntoTheBlock
Data from IntoTheBlock confirms this institutional interest. Large ETH holders have shown a net positive capital inflow since February 5th, with six consecutive days of inflow. This suggests whales are accumulating, further bolstering confidence.
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Looking Ahead
The current bullish sentiment surrounding ETH, driven by significant exchange outflows and institutional buying, is promising. Continued accumulation could push ETH towards $3000. However, a reversal in this trend could see prices drop to $2591.