Coinbase Top $1.2 Billion Ethereum Withdrawal, What’s Happening?
Ethereum has seen a number of notable withdrawals, suggesting that cryptocurrency whales are hoping for a price recovery. These large withdrawals caused ETH balances on centralized exchanges to fall to their lowest level since 2016.
Withdraw 336,000 ETH from exchange
Crypto analyst Ash Crypto took to X (formerly Twitter) to reveal a notable change in the amount of ETH currently held on centralized exchanges. In particular, withdrawals from both small and large investors have increased significantly, recording the highest withdrawal trend to date in 2024.
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This report focused on withdrawals from the Coinbase exchange, the largest cryptocurrency exchange in the United States. As the withdrawal trend increased, a whopping 336,000 ETH was withdrawn from exchange wallets in just 48 hours. This marks the highest withdrawal trend on the exchange so far this year.
However, Coinbase was not the only cryptocurrency exchange to be hit hard by Ethereum withdrawals, with ETH balances plummeting due to accumulated exchange addresses. As on-chain tracker Santiment noted in a report, total ETH held in centralized exchange wallets has decreased by 8.6% in the past two weeks alone.
These withdrawals had a major impact on foreign exchange balances, which fell to their lowest level in eight years. This means the last time foreign exchange balances were this low was in 2016. This was three bull markets ago.
Will this push Ethereum price to $10,000?
Naturally, the withdrawal of Ethereum from exchanges is optimistic considering the trend suggests that investors are choosing to hold on to their Ethereum coins rather than sell them. If the coins had moved in the other direction and been deposited on an exchange instead, the price would have fallen as this would mean investors would be looking to sell their holdings for a profit.
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Crypto analyst Ash Crypto shares the sentiment that withdrawals are bullish relative to prices. According to analysts, the Spot Ethereum ETF is scheduled to begin trading in 2024, meaning it is only a matter of time before ETH prices trade above $10,000.
Currently, ETH price is still closely following Bitcoin trend. It initially fell below this support level on Thursday before recovering above $3,500 once again. Nonetheless, losses continued on the weekly chart, with CoinMarketCap data showing a 7.88% decline.
Featured image created with Dall.E, chart from Tradingview.com
