Ethereum withdrawals from exchanges are pointing at a massive bullish run for the cryptocurrency, recent on chain data reveals. According to analyst Ali Martinez, in the past week, more than 300,000 ETH ($754 million) left exchange wallets ‘net’ — meaning that more ETH left than entered — and that is ‘large,’ said Martinez.
The main metric, “Exchange Reserve,” is the number of ETH stored in centralized exchange wallets. Usually, a rise in this metric shows that someone is selling and is putting ETH into an exchange to sell. But if we have a decline, it means that investors are withdrawing ETH to be used for long-term holding, which can be positive for ETH’s price.
Ethereum Exchange Reserves Drop
There is a sharp drop in Ethereum Exchange Reserves over recent days which is indicative of large withdrawals. These outflows might be orchestrated by whale entities, and analysts are referring to them specifically in relation to the drop from its $2,700 during a month ago high. If, however, this is the case, it likely means that large investors are buying ETH at lower prices.
Since then, Ethereum has rebounded above $2,500 and the Market Value to Realized Value (MVRV) Ratio, now at 1.2, indicates the vast majority of holders are profitable. When ETH has hit its price peaks in history, its MVRV Ratio was higher, so if things don’t turn around, the current level of profitability may not be indicative of a top.
Currently, ETH is trading at $2,500 and down 6% in the last week at the time of writing.
