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IntoTheBlock, a crypto analytics platform, reported that over $1.4B worth of Ether had recently exited crypto exchanges. Ethereum witnessed a huge surge in on-chain activity in the past week, with the outflow from crypto exchanges suggesting an accumulation trend. The last time such a high $ETH outflow from exchanges occurred was in November 2024.
IntoTheBlock’s data showed that $ETH’s total exchange netflow (total inflows minus total outflows) was—$60.57M, highlighting the high amount of $ETH leaving exchanges for wallets. According to the platform’s data, 74% of $ETH holders held onto the asset for over a year. CryptoQuant’s data also revealed massive $ETH outflows from exchanges, signaling low selling pressure among investors since the $ETH was bought on exchanges and transferred to external wallets.
High $ETH outflow from exchanges suggests investors are accumulating
This week saw significant $ETH outflows from exchanges, with net outflows surpassing $1.4 billion, the highest level since November.
This suggests a strong inclination towards accumulation among investors. pic.twitter.com/IbZS8vti2P
— IntoTheBlock (@intotheblock) January 10, 2025
CryptoQuant’s data on $ETH’s exchange flows showed that both the total exchange inflow and exchange outflow rose by 1.04% in the last 24 hours to 873.53K and 896.47K, respectively. The total net flow, however, went up 0.93% in the past 24 hours to -22.93K, indicating that more $ETH flowed out than into exchanges. The negative netflow suggested increasing investor ‘hodling’ behavior and low selling pressure.
The amount of $ETH reserved on exchanges also dropped by 0.12% in the last 24 hours to 19.255 million. On the upside, the U.S. dollar value of the $ETH reserved on exchanges gained 0.34% in the last 24 hours to $63.73 billion. Transactions depositing $ETH into exchanges also increased by 1.05% in 24 hours to 29.28 K. On the other hand, the number of transactions withdrawing $ETH from exchanges was much higher at 224.45K, a 0.93% gain within the same period.
Similarly, the number of addresses withdrawing $ETH from exchanges (3.568K) was 4x higher than the number of addresses depositing $ETH into exchanges (852.4). This huge difference indicated that more investors preferred to HODL Ether indefinitely than sell it. Continuing this trend could spark a strong upward momentum for $ETH.
Whale accumulation activity spikes amid high Ether outflow from exchanges
Ethereum whales moved $82.3M worth of $ETH from exchanges to private wallets. On-chain metrics from January 7th to January 10th indicate a notable decrease in exchange-held $ETH supplies, dropping by 0.25 million. The reduction aligned with increased activity from whale addresses, which suggested a strategic repositioning by the market’s heavyweights.
The accumulation phase coincided with Ethereum’s current trading price of $3.258K, following an 8.8% decline over the past week. Santiment’s transaction data highlighted an interesting pattern in whale behavior during Thursday’s trading session. High-value transfers ($100K-1M) significantly increased during this period. $ETH’s movement from exchanges to private wallets indicated a shift toward long-term hodling strategies. The current transfer pattern mirrored previous accumulation periods seen during market corrections.
This Whale behavior suggests strong confidence in future $ETH price appreciation. Small-scale whales and short-term $ETH holders sparked a net selling pressure of over 120K $ETH after the market’s decline on January 8th, but large whales returned to action and accumulated 210K $ETH. The price of $ETH could decline to $3,110 if the buy-side pressure of large whales fails to outweigh the bears. The high selling activity pressured the derivatives market, where $ETH led with over $130 million in long liquidation. According to CoinGlass data, the largest single liquidation order was an $ETH/USDT position worth over $17 million.
The whale transaction count peaked during recent price drops, and historical reports suggest that such activity marked potential bottom formations or preceded market reversals. Maintaining $ETH price levels above $3,029 was crucial for bullish scenarios to play out. A breach below this threshold could trigger additional selling pressure, potentially testing the 2.8K level.