ETH outflows from crypto exchanges hit 2022 peak as Ethereum price is rising. That’s a bullish sign.
More than $500 million worth of Ethereum have been withdrawn from cryptocurrency exchanges earlier this week. It means that traders look to hold on to their crypto in anticipation of bullish price action.
They are not going to sell ETH in the nearest future.
That’s a bullish sign for Ethereum.
Ethereum price is rising?
Trading at approximately $2,500 on March 15, ETH has since surged to $2,934 at the time of writing. That’s 17% in just one week.
Analysts data shows that more than 180,000 ETH was withdrawn from exchanges on Tuesday. Other sources point to even bigger volumes.
Last time we saw withdrawal of such a scale was in October. At that time the huge withdrawal of ETH preceded its phenomenal 15% surge in price.
So now we’ve got even bigger numbers. And that might just be a beginning.
Why is it a bullish sign for Ethereum?
Well, that’s easy to explain.
You keep your assets on crypto exchanges if you want to sell them. Or at least if you are ready to sell them in the nearest future.
If you want to hold your assets for a long period of time, there is no need to keep them on exchanges. Mostly people tend to keep their valuable belongings somewhere safe and private.
So if we see massive withdrawal of ETH from exchanges it is a clear sign that the owners are not planning to sell.
It’s worth mentioning that all the leading coins are on the rise now, including Bitcoin that profited more than many others after the US Federal Reserve announced a 25 basis point interest rate hike on Wednesday.
But there is one more marker pointing towards Ethereum as the most interesting coin now.
Last week more than 190,000 ETH was deposited for staking using Lido, a service that lets users stake various assets on other chains. Huge part of that volume went straight to Ethereum 2.0—the coming upgrade to Ethereum.
There is a striking 10,000,000 ETH staked on Ethereum 2.0 now, amounting to over $27 billion in staked value.
Ethereum is definitely rising now. Keep an eye on it.
Sources: Decrypt
