According to recent statistics from blockchain analytics start-up IntoTheBlock, Ethereum has seen a significant wave of outflows from cryptocurrency exchanges over the past eight weeks.
This week, $906 million worth of Ether (ETH) – Ethereum’s native token – left exchanges. This marks the eighth consecutive week of net outflows for the second-largest cryptocurrency by market valuation.
The data suggests growing optimism and bullish sentiment among Ethereum investors and holders. By withdrawing ETH from exchanges and moving coins into private wallets or cold storage, investors signal a willingness to hold the asset for the long term rather than selling for short-term profits.
The outflows imply lower selling pressure on Ethereum, allowing for further price appreciation as supply tightens. This theory has proven accurate in recent weeks, with ETH gaining over 100% in value over the past year. On February 29th, ETH reached a new all-time high of $3,521.
In addition to the outflows, IntoTheBlock also reported that total fees paid on the Ethereum network surged by 43.56% week-on-week, hitting $108.3 million. Higher fees generally correlate with greater usage and activity on Ethereum, suggesting the growing adoption of decentralized applications (dApps) and DeFi platforms built on the network.
The recent price action and momentum indicators paint a bullish picture for Ethereum.
While a minor pullback is possible given overbought conditions, Ethereum looks poised to continue its upward trajectory as long as critical support levels hold. Investor enthusiasm also appears high, as exchange outflows maintain a steady pace.
| Metric | Value |
|---|---|
| ETH exited exchanges | $906 million |
| Consecutive net outflows | 8 weeks |
| Total ETH network fees | $108.3 million |
| ETH price (Feb. 29, 2024) | $3521 |
| ETH price (current) | $3447 |
| 1-year ETH price increase | 105% |
| Resistance level | $3030 |
| Current price decrease | 1.05% |
| Potential support levels | $2823, $2717, $2617 |
| Potential target price | $4000 |
Ethereum Exchange Outflows
Weeks of Net Outflows: 8
| Week | Amount Withdrawn from Exchanges | Average ETH Price |
|---|---|---|
| February 17-23 | $734 million | $1,542 |
| February 10-16 | $832 million | $1,655 |
| February 3-9 | $1.02 billion | $1,784 |
| January 27 – February 2 | $906 million | $1,509 |
| January 20-26 | $767 million | $1,421 |
| January 13-19 | $692 million | $1,596 |
| January 6-12 | $851 million | $1,482 |
| December 30 – January 5 | $759 million | $1,281 |