Over $1.4B Ether exits exchanges this week, reaching November highs

IntoTheBlock, a crypto analytics platform, reported that over $1.4B worth of Ether had recently exited crypto exchanges. Ethereum witnessed a huge surge in on-chain activity in the past week, with the outflow from crypto exchanges suggesting an accumulation trend. The last time such a high ETH outflow from exchanges occurred was in November 2024.

IntoTheBlock’s data showed that ETH’s total exchange netflow (total inflows minus total outflows) was—$60.57M, highlighting the high amount of ETH leaving exchanges for wallets. According to the platform’s data, 74% of ETH holders held onto the asset for over a year. CryptoQuant’s data also revealed massive ETH outflows from exchanges, signaling low selling pressure among investors since the ETH was bought on exchanges and transferred to external wallets.  

High ETH outflow from exchanges suggests investors are accumulating 

This week saw significant $ETH outflows from exchanges, with net outflows surpassing $1.4 billion, the highest level since November.

This suggests a strong inclination towards accumulation among investors. pic.twitter.com/IbZS8vti2P

— IntoTheBlock (@intotheblock) January 10, 2025

CryptoQuant’s data on ETH’s exchange flows showed that both the total exchange inflow and exchange outflow rose by 1.04% in the last 24 hours to 873.53K and 896.47K, respectively. The total net flow, however, went up 0.93% in the past 24 hours to -22.93K, indicating that more ETH flowed out than into exchanges. The negative netflow suggested increasing investor ‘hodling’ behavior and low selling pressure. 

The amount of ETH reserved on exchanges also dropped by 0.12% in the last 24 hours to 19.255 million. On the upside, the U.S. dollar value of the ETH reserved on exchanges gained 0.34% in the last 24 hours to $63.73 billion. Transactions depositing ETH into exchanges also increased by 1.05% in 24 hours to 29.28 K. On the other hand, the number of transactions withdrawing ETH from exchanges was much higher at 224.45K, a 0.93% gain within the same period.

Similarly, the number of addresses withdrawing ETH from exchanges (3.568K) was 4x higher than the number of addresses depositing ETH into exchanges (852.4). This huge difference indicated that more investors preferred to HODL Ether indefinitely than sell it. Continuing this trend could spark a strong upward momentum for ETH.

Whale accumulation activity spikes amid high Ether outflow from exchanges 

Ethereum whales moved $82.3M worth of ETH from exchanges to private wallets. On-chain metrics from January 7th to January 10th indicate a notable decrease in exchange-held ETH supplies, dropping by 0.25 million. The reduction aligned with increased activity from whale addresses, which suggested a strategic repositioning by the market’s heavyweights. 

The accumulation phase coincided with Ethereum’s current trading price of $3.258K, following an 8.8% decline over the past week. Santiment’s transaction data highlighted an interesting pattern in whale behavior during Thursday’s trading session. High-value transfers ($100K-1M) significantly increased during this period. ETH’s movement from exchanges to private wallets indicated a shift toward long-term hodling strategies. The current transfer pattern mirrored previous accumulation periods seen during market corrections. 

This Whale behavior suggests strong confidence in future ETH price appreciation. Small-scale whales and short-term ETH holders sparked a net selling pressure of over 120K ETH after the market’s decline on January 8th, but large whales returned to action and accumulated 210K ETH. The price of ETH could decline to $3,110 if the buy-side pressure of large whales fails to outweigh the bears. The high selling activity pressured the derivatives market, where ETH led with over $130 million in long liquidation. According to CoinGlass data, the largest single liquidation order was an ETH/USDT position worth over $17 million.

The whale transaction count peaked during recent price drops, and historical reports suggest that such activity marked potential bottom formations or preceded market reversals. Maintaining ETH price levels above $3,029 was crucial for bullish scenarios to play out. A breach below this threshold could trigger additional selling pressure, potentially testing the 2.8K level.

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