 ▲ Ethereum (ETH) |
Ethereum (ETH) is signaling a powerful supply shock in the market as a record-breaking amount has flowed out of exchanges.
According to cryptocurrency media outlet U.TODAY on February 13 (local time), $660 million worth of Ethereum was withdrawn from major exchanges to external wallets over the past week. This move is interpreted as a strong indication that large investors, often referred to as whales, intend to hold Ethereum for the long term, suggesting that the circulating supply available on the market is rapidly shrinking. Crypto analyst Ali Martinez noted that such massive outflows could serve as a powerful catalyst for price increases.
A decline in Ethereum reserves on exchanges typically signals reduced selling pressure, as transferring assets off exchanges is generally interpreted as a sign that investors do not intend to sell in the near term. Data from on-chain analytics firm IntoTheBlock shows that the recent outflows are not limited to a single wallet but are occurring broadly across the ecosystem, reinforcing assessments that market fundamentals are strengthening. The trend is particularly encouraging as it coincides with growing institutional interest in Ethereum following the launch of spot Bitcoin (BTC) ETFs.
Technical indicators are also flashing positive signals, supporting the possibility of a rebound. As Ethereum secures support levels, the Relative Strength Index (RSI) has exited oversold territory and begun forming a gradual upward curve. The Moving Average Convergence Divergence (MACD) indicator is also expected to form a bullish golden cross soon, creating an environment where substantial buying interest targeting a technical rebound could flow into the market. Experts predict that if exchange reserves continue to decline, even modest buying pressure could trigger an explosive price surge.
Market participants expect the current outflow trend to generate synergy with anticipation surrounding the approval of a spot Ethereum ETF. Analysts suggest that if asset managers need to accumulate Ethereum directly to launch their products while exchange supplies run dry, the resulting price appreciation could be extraordinary. Retail traders are also closely watching whale movements and joining in dip-buying, spreading optimism throughout the market.
Ethereum now stands at the threshold of a new upward cycle, supported by the powerful tailwind of tightening supply. On-chain activity continues to grow steadily, and staking volumes are increasing, further reducing the circulating supply. Investors are focusing on the underlying reasons behind the $660 million outflow and are strategically positioning themselves in preparation for potentially significant price volatility ahead.
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