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The Ethereum market has recently witnessed a significant shift, with… Large flows from central exchanges This sparked discussions about the near future path of the cryptocurrency.
Amid this, Ethereum recorded a 2.4% decline over the past 24 hours at a current trading price of $3,858, which represents a 21.1% decline away from its all-time high of $4,878 in 2021.
Ethereum withdrawals from Binance exceed 7.8 million ETH
Data CryptoQuant reveals that nearly 20.8 million ETH have been withdrawn from centralized exchanges in the past two months, a trend reminiscent of the 2021 bull market. Binance has played a central role in this movement, accounting for more than 7.8 million ETH, which represents 33-39 % of total external flows.
These outflows could be an indication of investors accumulating ETH for long-term holding or staking purposes, suggested Crazzyblockk, a CryptoQuant analyst. The analyst added:
These large inflows from Binance indicate the platform’s continued influence on the cryptocurrency market, especially in balancing supply and demand for Ethereum.
It’s worth noting that Binance’s influence is particularly evident given its global user base of 250 million and record deposits of $21.6 billion this year, according to Crazzyblockk.
Large outflows from Binance are consistent with bullish market sentiment, as large-scale withdrawals often indicate investor confidence. These movements indicate that Ethereum holders are as well Transferring their assets outside the stock exchange.
This decrease in the available supply of ETH on exchanges could create… Upward pressure on pricesIf demand remains constant or grows.
Ethereum market performance and forecast
Ethereum has so far struggled to make a significant price move to the upside since the latest rally in the cryptocurrency market began months ago.
Although Bitcoin has been seeing steady gains hitting all-time highs almost every month, Ethereum lacks enough upward momentum to push its price. Exceeding the $4000 barrier.
It is worth noting that this sluggish performance of Ethereum comes amid Positive developments underway in the field of cryptography Including recent news about Deutsche Bank, Germany’s largest bank It is said Working on its Layer 2 (L2) blockchain on Ethereum using ZKsync technology.
JUST IN: Deutsche Bank Builds Its Layer 2 on Ethereum – Bloomberg pic.twitter.com/5O5K3R1fRg
— Radar
(@RadarHits) December 18, 2024
Regardless of this news, ETH saw a slight increase of 2.3% in the past week, which is a lower performance compared to the performance of Bitcoin which rose by 5% during the same period.
According to analysts, Ethereum is still likely to see further correction in its price as bearish signals have recently formed on its chart indicating a possible drop to 3400.
$ Ethereum A bearish double top has formed, with the Relative Strength Index (RSI) showing a bearish divergence and a MACD crossover confirming the trend.
A short-term correction could reach $3,400, with key supports at $3,200 and $3,000. #Ethereum #Cryptotrading #eth pic.twitter.com/iWaPh1vwrr
– Eagle Crypto Trader
(@crypto_vulture1) December 18, 2024
Featured image created with DALL-E, chart from TradingView
