$380M ETH Exchange Outflows Suggest Supply Squeeze as Bulls Rebuild
By: cryptonews|2025/05/03 03:00:01
0
Share
Over $380 million in Ethereum has flowed out of exchanges in the past week. Large ETH holders have increased their positions, reversing a long-term downtrend in wallet concentration. On-chain data suggests growing investor confidence despite subdued trading volumes and ongoing market caution. Ethereum (ETH) continues to flow out of centralized exchanges at a significant rate. Over the past seven days alone, net outflows surpassed $380 million, according to blockchain analytics firm IntoTheBlock. This reduction in exchange-held ETH reflects growing investor accumulation into self-custody and could point to a tightening supply narrative that has historically preceded price rallies. ETH Accumulation Persists Despite Price Volatility Data shows Ethereum’s net flows from exchanges were consistently negative between April 24 and May 1, with a particularly large outflow recorded on April 26. This behavior suggests that investors took advantage of short-term price dips to buy and withdraw ETH into self-custody. Despite price fluctuations during the week, ETH ended the period on a positive note, climbing back above $1,840. Analysts interpret sustained exchange outflows as a bullish sign as reduced supply on exchanges lowers the risk of sell pressure and may create the conditions for a breakout if demand increases. Related: Ethereum (ETH) Price Prediction May 2025: Will ETH Break $2,100 or Face Rejection? On-Chain Data Shows Whale Accumulation, Steady Activity This outflow trend supports the broader narrative that Ethereum could be setting up for a major rebound after massively underperforming Bitcoin this cycle. Recent data from CryptoQuant shows that the distribution of Ethereum supply by wallet size indicates that the largest holders are either maintaining their positions or continuing to accumulate. CryptoQuant analyst Darkost highlighted that wallets holding more than 100,000 ETH have grown by approximately 3% since August 2024. He sees this as a sign of “smart money” positioning. He noted that since 2020, the proportion of ETH held by large wallets had gradually decreased, but that trend now appears to be reversing. More Bullish On-Chain Data Pointing to a Likely Rally for Ethereum Darkost also noted that the number of active addresses has remained steady despite ETH’s price decline. He observed considerable selling pressure in the derivatives market, though this may be easing. Notably, Net Taker Volume turned positive on April 23 and 24, which could signal the beginning of a bottoming process if the trend continues. Darkost stressed that these metrics run counter to the “Ethereum is dead” narrative. Essentially, despite ETH currently trading about 62% below its 2021 all-time high, on-chain data points to enduring strength and strategic accumulation. Related: ETH Price Outlook: Can Bulls Defend $1,750 or Will May Start With a Breakdown? How to Approach ETH Darkost concluded that while some encouraging long-term signals exist, on-chain data still reflects a lingering sense of pessimism around ETH. He also noted that open interest has dropped significantly and that trading volumes remain subdued, both of which underscore the cautious market sentiment. In his view, the most prudent approach right now may be to wait for a clear invalidation of the bearish trend or, at most, to engage in a light dollar-cost averaging (DCA) strategy. Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
You may also like
Is the Storage Cycle Peaking? Here’s a 'Fundamental Psychological Massage' from Bank of America
Upbit operator Dunamu wins bid for South Korea police crypto custody contract
Bitcoin is not a stock, nor a company, but a monetary asset
ADI's Hidden Victory: From World Cup Entry to Traditional Financial Ecosystem
What Are the Best Metals for Investment Besides Gold?
Odaily Editorial Team Tea Talk (July 8)
Controversy Surrounding Huawei's Prodigy Li Bojie and His DeepSeek Interview Experience Amid Web3 Investor Backlash
SemiAnalysis: Anthropic's Q3 Profit Expected to Exceed $1 Billion
Anthropic is quietly disrupting the AI commercial landscape. With the explosive popularity of Claude Code, its ARR has surged from $9 billion to over $60 billion in a single quarter, with API business gross margins exceeding 80% and net revenue retention rates reaching 500%. Research firm SemiAnalys...
From 'Never Sell Bitcoin' to Active Management: How is Strategy Coping with $1.26 Billion Annual Dividend Pressure?
Leverage Products Trigger Major Changes in Stock Market: How Did the South Korean Market Become a 'Casino'?
Bernstein Analysis: Memory Prices Are Still Rising, But Phones and PCs Can't Keep Up
Satoshi Bitcoin lawsuit drops 44 wallets after on-chain activity
Upcoming Auction of Token FOLD: What is The Interfold Supported by Vitalik?
The Demystification of AI Collaboration Tools: Is Organizing Reports and Checking Spreadsheets the Most Common Scenario?
Goldman Sachs Trading Desk: The Sell-off of Momentum Stocks in the U.S. is Fierce, Unseen Since 2020! But No 'Panic' Yet, Retail Investors are the Biggest Support
Collateral USD: How does the "second layer dollar" above stablecoins form?
Under the reference framework of the offshore dollar system, once stablecoins are incorporated into the collateral financing chain, it may give rise to a new type of dollar debt based on them—“collateralized dollars.” Whether this layer of debt can be established and whether it is stable depends on ...
How has the Pacific "fever" turned extreme weather into a cash machine for Wall Street?
The extreme weather caused by El Niño is sweeping through the commodity markets, becoming not only a "weather code" for quantitative funds and traders to frantically profit from, but also quietly driving up global food prices and the cost of living for ordinary people.
Trade Spot Market Orders With More Control: WEEX Adds Slippage Tolerance
WEEX Spot now supports Slippage tolerance for market orders, helping users set a maximum acceptable price deviation before placing a market buy or sell order
Is the Storage Cycle Peaking? Here’s a 'Fundamental Psychological Massage' from Bank of America
Upbit operator Dunamu wins bid for South Korea police crypto custody contract
Bitcoin is not a stock, nor a company, but a monetary asset
ADI's Hidden Victory: From World Cup Entry to Traditional Financial Ecosystem
What Are the Best Metals for Investment Besides Gold?
Odaily Editorial Team Tea Talk (July 8)
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com


