Ethereum Exodus Accelerates: $380 Million Pulled Out

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Recently, Ethereum has shown positive momentum, rising to $1,847 after falling below $1,750 at the end of April. This recovery comes after a volatile period, with price swings between $1,740 and $1,847 over the last week.

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In light of the uncertainties impacting the broader cryptocurrency market, Ethereum’s resurgence appears to correspond with changing investor sentiment, particularly on centralized exchanges, where a notable volume of Ether has been withdrawn in the past week.

$380M in ETH Withdrawn from Exchanges as Accumulation Trend Grows

Recent data shows that over $380 million worth of Ethereum has been taken out from centralized exchange platforms in the last week. This outflow represents a growing trend of accumulation among crypto investors, who are transferring their assets into self-custody, typically indicating long-term confidence.

The accompanying graph highlights this trend, revealing five consecutive days of net negative flows across a collection of 19 crypto exchanges.

The last positive inflow of Ethereum on these exchanges occurred on April 27, amounting to $50 million. Interestingly, before that, a significant outflow of $166.68 million was observed just one day prior. This exchange flow pattern suggests that Ethereum investors might be gearing up for a potential rally.

Large outflows from exchanges are often precursors to significant bullish movements, and current patterns reflect previous cycles where decreasing balances on exchanges led to sustained price rises. The ongoing withdrawal trend aligns with Ethereum pushing back over the $1,800 threshold.

Image Source: IntoTheBlock

Important Support Level for Ethereum at $1,770

The current accumulation phase is backed by insights from crypto analyst Ali Martinez, who recently highlighted a key support level for Ethereum. He regards the $1,770 range as critical for Ethereum’s short-term outlook, referencing data from IntoTheBlock’s “In/Out of the Money Around Price” model.

This model indicates a significant concentration of wallets (approximately 4.5 million addresses) holding 6.36 million ETH in the range of $1,772 to $1,824. These addresses are now “in the money” following Ethereum’s rebound to $1,845, establishing this range as a psychological support area.

ETH is currently trading at $1,839. Chart: TradingView

The significance of this support zone is evident. If Ethereum manages to stay above this cluster of demand, the chances of further upward movement will increase. Conversely, a drop below $1,770 could disrupt the current bullish trend and leave Ethereum vulnerable to downward fluctuations.

Image Source: @ali_charts

Currently, net flows from exchanges suggest that Ethereum is likely positioned to maintain its stability around the $1,770 mark. A reduction in available Ethereum on exchanges decreases selling pressure. Conversely, in the short term, the next key resistance level to surpass is located at $1,881.