The post Ethereum Sees $181,000,000 in Exchange Outflows Ahead of Historically Strong Months appeared first on Coinpedia Fintech News
Ethereum saw around 110,000 ETH ($181 million) moved off exchanges on Wednesday in the largest single-day outflow since August, according to on-chain data firm Santiment. The amount of ETH now held off exchanges sits at an all-time high of 115.88 million.
This significant transfer of ETH comes right before the crypto market enters a historically favorable period in December and January. According to analyst Altcoin Sherpa, these two months show strong performance for Bitcoin and Ethereum.
#Ethereum saw about ~110K $ETH ($181M) move off of exchanges Wednesday, the largest outflow day since August 21st. The amount of non-exchange Ethereum now sits at an #AllTimeHigh 115.88M $ETH, while its exchange supply is at its lowest in ~5.5 years. https://t.co/PUOWGt0KS0 pic.twitter.com/u54pp6LZij
— Santiment (@santimentfeed) October 5, 2023
Even in down markets, Bitcoin and Ethereum have produced rallies during December and January in recent years. The ETH/BTC ratio tends to trend upward, signaling a greater appetite for altcoins.
Data hints at bullish Ethereum sentiment
The data hints at bullish sentiment coalescing around Ethereum before the calendar turns to its seasonally strongest months. Investors appear to be stacking ETH in anticipation of typical year-end rallies.
However, the macro environment differs significantly from past years amid the fallout from broad crypto industry contagion. Market participants are cautious about calling for a definitive turnaround.
Nonetheless, on-chain metrics reflect gathering optimism as Ethereum reserves drain from exchanges. This may set the stage for ETH to outperform Bitcoin again around the holidays.
Strong seasonal tailwinds could accelerate Ethereum’s nascent recovery. But the sustainability of any rally likely depends on the duration of ongoing macroeconomic headwinds.
Ethereum is hovering around $1620 at press time, with a 1.2% drop in value over the last 24 hours. ETH touched a monthly high of $1750 when BTC surpassed $28,000. However, the second-largest cryptocurrency failed to hold the ground and has plunged in value.
