Ethereum (ETH), the cryptocurrency ranking as the second largest by market capitalization, has recently witnessed a notable increase in the movement of assets out of exchanges.
As reported by IntoTheBlock, a substantial sum of $210 million in ETH has departed from centralized exchanges (CEXs) within the week. This amount marks the most substantial seven-day net outflow since August.
Historically, such exchange outflows frequently indicate that investors are shifting their assets from centralized exchanges to private wallets.
A prevailing explanation behind the increase in exchange outflows is the theory that long-term investors are withdrawing their assets to hold them for extended durations. This behavior can be interpreted as a sign of unwavering confidence in the cryptocurrency’s long-term potential.
The recent surge in exchange outflows has stirred speculation regarding the future of Ethereum’s price. Many are pondering whether this bullish trend will contribute to a price recovery and potentially propel the value of ETH.
As of the time of this writing, ETH has registered a 1.57% increase over the past 24 hours, reaching a price of $1,836.
Santiment, an on-chain analytics firm, believes that ETH’s climb above the $1,800 threshold has been influenced by network expansion and the sustained trend of exchange outflows. It posits that if the continued growth of the network and the persistence of exchange outflows endure, Ethereum might have the foundation to breach the $2,000 mark once again.
Trading volumes for Ethereum are increasing.
As reported by IntoTheBlock, the weekly value of assets settled on Ethereum, encompassing ETH, stablecoins, and the top 50 tokens, has attained its highest point since the SVB market crash in March.
During the previous week, the mainnet alone recorded over $213 billion in settled volume, with an additional $16 billion transacted across Arbitrum, Optimism, and Base.
This rising on-chain settlement volume potentially reflects an enhancement in the underlying fundamentals of the network.
While short-term market price adjustments may occur, the surge in on-chain activity and increased inflows from spot markets suggest that robust demand is propelling the cryptocurrency sector’s progress.