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Ethereum Exchange Outflows Hit Four Year Low, As the Price of Ether Rises -Breaking

by Mike Robinson

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Ethereum Exchange Outflows Reach a Four-year Low as Ether Prices Rise

The year 2021 could be considered as a positive year for Ether, which has increased in value by over 450% since the beginning of 2018. Regardless of Ethereum’s strong performance this year, exchange outflows of Ether have fallen to a four-year low.

Glassnode’s data indicates that ETH outflows are at an all-time low since January 2018, according to Glassnode. Exchange outflows are the amount of tokens that have been removed from exchange wallets during a specified period.

For determining market trends, exchange outflow is a long-standing indicator. Although investors see low exchange outflow as a precursor to a bearish trend, Ethereum’s situation may just be the outlier many hope it is.

As ETH price rises, exchange outflows decrease

What is interesting about Ethereum’s declining outflows is that it correlates with an increase in the price of Ethereum.

CryptoQuant’s on-chain data confirms that ETH outflows have been steadily falling throughout the year.

Graph showing Ethereum’s derivative exchange outflows from January 1st, 2021, to December 27th, 2021 (Source: CryptoQuant)

Relating to the correlation, Ethereum holders who had expected a major rally in the wake of November’s ATH could be moving their stakes off exchanges, potentially contributing in large part to the decline.

The world’s largest crypto, , is also experiencing a similar trend. According to on-chain data, the amount of BTC being held on exchanges has dropped to 1.3 million, or 6.3% of Bitcoin’s total supply.

The Flipside

  • Since ETH outflows hit their 4-year low, the Ether price has declined by 4% and now trades at $3,919 (as of this writing).

Here is the 24-hour price chart for Ethereum (ETH). Source: Tradingview

Why you should care

Many crypto investors are choosing to HODL their coins rather than selling them due to the predicted explosive growth of the industry by 2022.

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