800,000 ETH Flow Out Of Centralized Exchanges In 2024 – Bullish Sign For Ethereum Price?
February 24 2024 - 2:16AM
NEWSBTC
The price of Ethereum has been a joy to watch since the start of
2024, climbing by more than 30% in less than two months. The latest
on-chain revelation suggests that ETH investors are approaching the
market with more confidence, as the cryptocurrency’s price rally
seems to be far from over. $2.4 Billion Worth Of ETH Leaves
Exchanges: CryptoQuant A pseudonymous analyst on CryptoQuant’s
Quicktake revealed that significant amounts of the Ethereum token
have been making their way out of exchanges in the last few weeks.
This observation is based on the “Exchange Reserve” metric, which
tracks the amount of ETH tokens in the wallets of all centralized
exchanges. When the value of this metric increases, it implies that
investors are making more deposits than withdrawals of an asset
(Ether, in this case) into centralized exchanges. Meanwhile, the
metric’s decline means that more assets are flowing out than
entering these platforms. Related Reading: Bitcoin Wallets Bleed:
730K Investors Exit Despite Record $7 Billion ETF Inflows According
to data from CryptoQuant, more than 800,000 ETH (equivalent to
approximately $2.4 billion) has flowed out of cryptocurrency
exchanges since the turn of the year. Typically, the movement of
significant amounts of cryptocurrencies out of these platforms
suggests a rise in investor confidence. Ethereum's exchange reserve
| Source: CryptoQuant As the CryptoQuant Quicktake author noted,
this reduction in Ether’s exchange reserve balance could be a
bullish catalyst for the altcoin’s price. A sustained decline in
the ETH’s supply on exchanges could trigger a supply crunch,
potentially driving the Ethereum price higher. As of this writing,
the Ethereum price stands at around $2,920, reflecting a 1.8%
decline in the past day. Nevertheless, the “king of altcoins” is
still in the green on the weekly timeframe, with an almost 5% price
jump over the last week. Ethereum Price Rise Due To Anticipation Of
Dencun Upgrade: Grayscale In a recent report, Grayscale has offered
commentary on Ethereum’s positive price performance so far in 2024.
The asset management firm tied ETH’s bullish trajectory to the
upcoming Dencun upgrade of the Ethereum network. William Ogden
Moore, Grayscale’s research analyst, wrote in the report: We
believe that recent price performance reflects the market’s
anticipation of this upgrade, as Ethereum (up 26% YTD) has
outperformed the broader Smart Contract Platforms Sector (up 3%
YTD) since January 1st, 2024. The Dencun upgrade, which is less
than a month away, will aim to enhance Ethereum in terms of
scalability and cost-effectiveness. It is also expected to help the
network compete with “faster chains in the Smart Contract Platforms
Crypto Sector, such as Solana.” Another narrative that may be
propelling the price of ETH is the approval of Ethereum spot
exchange-traded funds (ETFs) in the United States. Interestingly,
Grayscale is amongst the asset managers looking to debut an Ether
spot ETF. Ethereum price at $2,923 on the daily timeframe | Source:
ETHUSDT chart on TradingView Featured image from Unsplash, chart
from TradingView
Quant (COIN:QNTUSD)
Historical Stock Chart
From Apr 2024 to May 2024
Quant (COIN:QNTUSD)
Historical Stock Chart
From May 2023 to May 2024