Crypto Holders Accumulate Ethereum as ETH Leaves Exchanges
Cryptocurrency analyst and trader Ali Martinez has observed a significant outflow of Ethereum (ETH) from crypto exchanges, suggesting that holders are accumulating the native asset of the leading smart contract protocol. In less than a month, approximately 510,000 ETH, valued at around $1.22 billion, have been withdrawn from known exchange wallets. This withdrawal trend indicates strong holder sentiment and potentially less selling pressure in the Ethereum market.
According to data from crypto analytics platform Glassnode, the amount of Ethereum on exchanges reached just under 14.4 million in December but fell to less than 13.65 million in late January. As of now, Ethereum is trading at $2,316.
Cardano’s Next Market Expansion Expected
Ali Martinez also predicts that Cardano (ADA), an Ethereum rival, may experience its next market expansion in the coming months if it follows its late 2020 price action pattern. Martinez suggests that ADA could remain in a consolidation phase until April 2024 before entering its next bull rally. Cardano is currently trading at $0.496.
Dogecoin Poised for Increased Volatility
Martinez also comments on Dogecoin (DOGE), noting that it is currently trading in a tight range based on the Bollinger Bands indicator. This suggests an impending spike in DOGE price volatility, although Martinez does not specify the direction of the move. Dogecoin is trading at $0.0783.
Hot Take: Ethereum Outflows Signal Strong Holder Sentiment
The significant outflow of Ethereum from crypto exchanges indicates a positive sentiment among ETH holders and potentially less selling pressure in the market. With over $1.22 billion worth of ETH leaving known exchange wallets in just three weeks, it seems that holders are accumulating the cryptocurrency. This trend suggests confidence in Ethereum’s future prospects and could contribute to its price stability and potential upward movement. As more ETH leaves exchanges, it reduces the available supply, which may further drive up its value in the long run.
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