Large Ethereum holders are rapidly withdrawing ETH from centralized exchanges as prices recover above $1,850.
Percentage of Ethereum supply on exchanges dropped to 8.41%, the lowest level since Ethereum’s launch in 2015.
ETH’s price surged over 12% in a week, reaching its highest in three months.
Large Ethereum holders have been rapidly withdrawing ETH from centralized exchanges as prices recover above $1,850, according to blockchain analytics firm Santiment.
Santiment reported that the percentage of ETH supply held on exchanges has dropped to just 8.41%, the lowest level since Ethereum first launched in 2015.
Ethereum exodus comes as price surged
This massive ETH exodus comes as Ethereum surged over 12% this week, reaching its highest price in almost three months. The rally has been driven in part by speculation that the SEC may soon approve a spot Bitcoin ETF.
Data shows whales have ramped up withdrawals in response to the price spike. A single entity snapped up 56,070 ETH worth $98 million in under 24 hours amid the run-up.
Analysts view exchange outflows as a bullish sign, indicating large holders are accumulating ETH and moving it into secure storage in anticipation of further gains. This reduces potential selling pressure on exchanges.
The combination of supply shrinking on exchanges while prices climb has historical parallels with previous bull market run-ups. It suggests whales are positioning for an extended Ethereum price rally.
However, some argue short-term speculation around Bitcoin ETF approval may be skewing activity. They contend the hype could fade quickly if an ETF is delayed again.
Nonetheless, on-chain behavior reflects a dramatic pivot by Ethereum whales back into accumulation mode after months of selling pressure. With supply declining rapidly, the path of least resistance seems to be upward if demand continues rising.