Ethereum (ETH), the second world’s largest cryptocurrency, has come under intense action from exchange platforms. Renowned on-chain analytical platform CryptoQuant revealed that over 800,000 ETH were recently removed from different exchanges.
$3 Billion ETH Leaves Exchanges
At the current market price, the 800,000 ETH, which translates to approximately $3 billion were removed from exchanges in just 8 days. This large outflow of ETH has raised concerns within the crypto community with investors wondering who could be responsible. Analyzing the situation in a Quicktake, CryptoQuant noted that the removal of Ethereum follows approvals of its underlying spot ETF products.
Over 800,000 #Ethereum Outflow From Exchanges Following $ETH Spot ETF Approval
“Institutions preparing for the Spot ETF could be behind this wave of heavy outflow that lasted for 8 days.” – By @burak_kesmeci
Read more 👇https://t.co/LM4eJ7nNjr
— CryptoQuant.com (@cryptoquant_com) June 3, 2024
While the entities responsible for the removal remain unknown, CryptoQuant’s analyst Burak Kesmeci said a similar situation was observed after the approval of spot Bitcoin ETFs. The analyst opined that large investors often referred to as whales or individuals optimistic about ETH’s price following the ETF approval could be responsible for the large outflow.
He highlighted that these institutions may want to satisfy the demand of their investors with the coming launch of spot Ethereum ETF. The analyst concludes that his answers are only assumptions. Notwithstanding, he anticipates that the removal of over 800,000 ETH from exchanges within a few days will boost the price in the medium term.
Amid this development, American investment management firm Ark Invest announced a decision to end its pursuit of launching a spot ETH ETF. Notably, the latest decision does not impact ARK Invest’s relationship with 21Shares as its spot Bitcoin ETF partner.
How Ethereum is Fairing
As of this writing, ETH is trading at $3,812, demonstrating price increases of 0.4% in the past day. The market also increased slightly, while trading volume increased by 16% to $11.7 billion, indicating renewed vigor from investors.
Meanwhile, Ethereum’s price prediction sentiment is currently bullish, while the Fear & Greed Index is showing Greed at 73. If Ethereum continues on this bullish momentum, the price could get to its next critical resistance level at $4,000 soon.
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