Ethereum Supply Tightens With Major Exchange Outflows, ETF Demand Rising
Over the past week, Ethereum has seen significant withdrawals from Binance and consistent inflows into U.S. spot ETFs.
Quick overview
- Ethereum has experienced significant withdrawals from Binance, with over 630,000 ETH worth approximately $2.7 billion leaving the exchange in just over a week.
- This reduction in supply has sparked bullish speculation, suggesting that long-term holders are preparing for a potential price breakout.
- U.S. spot ETFs have seen substantial inflows, with 286,000 ETH acquired in one week, indicating strong institutional interest.
- Despite trading near $4,400, the ongoing demand and tightening supply position Ethereum for possible future gains.
Over the past week, Ethereum has seen significant withdrawals from Binance and consistent inflows into U.S. spot ETFs. As it consolidates above important support, ETH maintains its technical strength.
Ethereum has started September with a new wave of bullish speculation after a lot of ETH was taken off of exchanges. More than 630,000 ETH, worth around $2.7 billion, departed Binance in just over a week. This made the supply tighter and had people hopeful that the second-largest cryptocurrency could be getting ready for another boom.
According to Glassnode data, inflows kept going up during July and August, with numerous weeks seeing more than 500,000 ETH in total demand. This suggests that money is being saved. It looks like LTHs are getting ready for a possible breakout because supply is leaving CEXs at the same time.
The strongest indication came from Binance, which is the biggest exchange in the world by volume. The site lost 630,000 ETH between August 23 and 31, with an incredible 465,000 ETH leaving in just four days.
When whales and long-term holders make such large withdrawals, it usually means they are shifting their assets to cold storage, which means they believe prices will go up in the next few months. Data from CryptoQuant backs this up by revealing that Binance’s Ethereum reserves are quickly running out.
Despite its bullish stance, Ethereum is trading close to $4,400 with institutions not being hesitant to acquire greater prices. According to Glassnode, U.S. spot ETFs took in 286,000 ETH in only one week, which is one of the strongest inflow streaks since the products launched earlier this year.
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