Ethereum has bounced back to the $2,800 level following a recent price crash, as on-chain data reveals significant outflows from exchanges. According to IntoTheBlock, investors reacted to the dip by withdrawing a staggering 350,000 ETH, worth approximately $982 million, from centralized exchanges.
The timing of these outflows suggests that whales are likely accumulating Ethereum at discounted prices, contributing to the cryptocurrency’s recovery. The Exchange Netflow metric, which tracks the net movement of tokens in and out of exchanges, recorded its highest level of net withdrawals since January 2024.
This bullish trend could continue to influence Ethereum’s price in the near term, with sustained outflows potentially driving further upward momentum. However, a shift towards increased inflows might signal a bearish sentiment among investors.
In related news, the stablecoin USDC has experienced a surge in transaction volume, with daily transactions increasing by over 119% in the past year. As stablecoins often serve as a catalyst for trading activity in volatile assets like Ethereum, this growth in USDC usage could bode well for the broader cryptocurrency market.
Despite the recent recovery, Ethereum remains down more than 11% over the last seven days, trading at around $2,800 at the time of writing. As the market continues to evolve, investors should keep a close eye on key metrics like Exchange Netflow and stablecoin activity to gauge potential shifts in sentiment and price action.
Tags: Ethereum, ETH, Crypto Market, Exchange Outflows, Whales, USDC
Source: NewsBTC