Recently the Ethereum market has seen a certain trend, with large flows out of centralized exchange sparking discussions about the cryptocurrency's near-term trajectory.
Amid this, Ethereum has recorded a 2.4% decrease in the last 24 hours with a current trading price of $3,858, marking a 21.1% decrease away from the all-time high of $4,878 seen in 2021.
Ethereum withdrawal from Binance exceeds 7.8 Million ETH
Data from CryptoQuant indicates that approximately 20.8 million ETH have been withdrawn from centralized exchanges in the past two months, a trend that seems to be the bull market of 2021. Binance has played a key role in this trend , accounting for more than 7.8 million ETH, which represents 33-39% of the total outflow.
These outflows could be a sign of investors hoarding ETH for long-term holding or staking purposes, as suggested by CryptoQuant analyst Crazzyblockk. The analyst added:
These large flows from Binance show the platform's continued influence on the cryptocurrency market, especially in balancing supply and demand for Ethereum.
In particular, Binance's influence is particularly evident with its global user base of 250 million and a record $21.6 billion in investments this year, according to Crazzyblockk.
The substantial outflow from Binance aligns with bullish market sentiment, as large-scale pullbacks often signal investor confidence. These trends suggest that Ethereum holders moving their funds from exchanges.
This decrease in the ETH supply available on exchanges can create upward pressure on pricesif demand remains stable or grows.
Etheruem Market Performance and Outlook
Ethereum has so far struggled to make a significant upward price move since the latest crypto market bull run began a few months ago.
Despite the fact that Bitcoin sees constant gains recording new all-time highs almost every month, Ethereum has lacked enough upward movement to push its price. over the $4,000 barrier.
It is worth noting that this slow performance from Ethereum comes among the positive developments underway in the crypto space including the latest news from Deutsche Bank, Germany's largest lender reported works on its own layer-2 (L2) blockchain on Ethereum using ZKsync technology.
JUST IN: Deutsche Bank is building its own Layer-2 on Ethereum – Bloomberg pic.twitter.com/5O5K3R1fRg
– Radar
(@RadarHits) December 18, 2024
Despite such news, ETH has seen a modest increase of 2.3% in the past week, a lower performance compared to Bitcoin's increase of 5% over the same period.
According to analysts, Ethereum could still see a further correction in its price as recently formed bearish signals on its chart suggest a possible fall to 3,400.
$ETH has formed a bearish double top, with RSI showing a bearish divergence and a MACD crossover confirming the trend.
A short-term correction could lead to $3,400, with major support at $3,200 and $3,000. #Ethereum #CryptoTrading #it pic.twitter.com/iWaPh1vwrr
– Vulture crypto trader
(@crypto_vulture1) December 18, 2024
Featured image created by DALL-E, Chart from TradingView
