Ethereum whales continue to accumulate despite the current downtrend in ETH’s price, providing a bullish outlook for the second-largest cryptocurrency by market capitalization. Especially, ETH withdrawals from exchanges recently reached their highest level since last October, totaling over $400 million.
Ethereum whales accelerate withdrawals from exchanges
Cryptocurrency analyst Arab Chain noted in CryptoQuant Analysis that rising Ethereum withdrawals from exchanges have reached their highest level since October. The analyst noted that exchange network flow data over the past few days indicates a marked acceleration in recall activity. This signals a change in the behavior of Ethereum whales as demand exceeds supply.
Arab Chain revealed that on all exchanges Ethereum net outflows exceeded 220,000 ETH, which is the highest level of withdrawals since October last year. This suggests that Ethereum whales are moving their coins to private wallets or long-term storage protocols, which the analyst noted is often associated with accumulation phases or risk-mitigating behavior.
It is worth noting that on February 5, daily net outflows on Binance reached almost 158,000 ETH, which is the highest level since August last year. Arab Chain said this confirms that much of the recent outflows have been concentrated on the most liquid exchanges. From a price point of view, the analyst noted that the Ethereum whales’ accumulation coincided with ETH trading ranging from $1,800 to $2,000.
Therefore, Ethereum whales may see these levels as attractive zones to hold or reposition in the face of a downtrend in the cryptocurrency market. Arab Chain added that continued ETH outflows from exchanges on this scale reduces immediate selling pressure and could provide near-term support to the ETH price, especially if the market gains momentum again.
Ethereum staking reaches a fresh high
According to Token Terminal, Ethereum staking exceeded 30% of total supply, setting a fresh all-time record (ATH) in staking rate. Market commentator Marked the Milky Way this means that 36.8 million ETH, or approximately $72 billion, is currently locked and the network is secured by almost 1 million validators.
Milk Road further described this development as a sign of confidence in the Ethereum ecosystem, noting that these whales are willing to lock up $74 billion during a downtrend in the market. It is worth noting that betting on the starting line is approximately 4.1 million ETH, which according to a market commentator is nothing compared to the current rate.
Interestingly, it also takes approximately 72 days for ETH to be staked at the moment with demand establishing at a fresh high. Meanwhile, Milk Road also noted that the obvious effect is a significant reduction in supply, which is a catalyst for ETH price increases.
At the time of writing, Ethereum is trading around $1,965, down over the last 24 hours, according to data from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com
