Ethereum Bulls Aggressively Withdrawing ETH from Exchanges: What Does It Mean?

Winfried S. Krantz
By Winfried S. Krantz Add a Comment
3 Min Read

Despite recent price declines, Ethereum (ETH) bulls seem to be gearing up for a potential price recovery. On-chain data reveals that ETH is currently trading around $3,130, down from its recent high of $3,434 on November 12. However, many investors believe this pullback is only temporary. Here’s an analysis of what could be next for Ethereum.

Ethereum Bulls Aggressively Withdrawing ETH from Exchanges: What Does It Mean? = The Bit Journal

Investors Are Holding, Not Selling

Data from Glassnode indicates that total Ethereum exchange inflow has decreased significantly, standing at 249,245 ETH as of today. Exchange inflow measures the number of coins sent to exchanges over a specific period. When this metric rises, it signals increased selling pressure, creating a bearish environment for the asset. Conversely, a decline suggests that investors are withdrawing their assets, a bullish signal.

Currently, the withdrawn ETH, valued at approximately $780 million, reflects a decrease compared to the levels observed on November 15. This shows that most ETH holders are refraining from selling. If this trend continues, the chances of Ethereum dropping below $3,000 in the short term diminish.

Ethereum Bulls Aggressively Withdrawing ETH from Exchanges: What Does It Mean? = The Bit Journal

IntoTheBlock’s data further underscores this sentiment. According to the Bulls vs. Bears indicator, Ethereum bulls are actively working to support the price. This metric tracks whether the addresses responsible for at least 1% of trading volume are engaging in buying or selling activities. Over the past 24 hours, Ethereum bulls have outnumbered bears, suggesting potential price stability or an upward move.

Price Projections for ETH

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Analyst Victor Olanrewaju highlights the In/Out of the Money Around Price (IOMAP) indicator, which suggests ETH could trade at higher levels. The IOMAP metric identifies key support and resistance zones based on user positions and profitability. Larger volume clusters usually signify stronger levels of support or resistance.

Recent data shows that approximately 3 million addresses purchased 3.56 million ETH at around $3,075, making this a critical support level. These investors are currently in profit, and the data indicates they are unlikely to sell until prices approach the $3,251–$3,591 range.

Given this backdrop, Ethereum’s price may climb toward $3,600. However, Olanrewaju warns that if selling pressure increases, this scenario might not materialize, and ETH could fall below $3,000.Ethereum Bulls Aggressively Withdrawing ETH from Exchanges: What Does It Mean? = The Bit Journal

Conclusion

The current on-chain metrics point to a strong support level for Ethereum and reduced selling pressure from investors. If the bullish momentum persists, ETH could see significant upward movement. However, as with all cryptocurrencies, the market’s volatility means investors should approach cautiously.

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Disclaimer

The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.

You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.

Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.

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Content Editor/ Writer Hello, my name is Winfried Krantz and I am a banking analyst and finance journalist with expertise in economics, finance, and cryptocurrency. With over 10 years of experience in the industry, I have a deep understanding of how these fields interact and influence each other.I received my BSc in Finance, Accounting, and Management from the University of Nottingham, where I honed my skills in financial analysis and reporting. Since then, I have worked with a number of leading publications, sharing my insights and helping readers stay up-to-date with the latest trends and developments in the world of finance.
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