Ethereum Outflows From Exchanges Rise, Will ETHUSD Break $2k?
Centralized exchanges now hold fewer ETH in their reserves. This keeps reducing as traders move funds in hopes of leveraging other high-yielding opportunities presented in DeFi and staking. This development is despite ETH's underperforming Bitcoin in recent days. Over the past few days, the Bitcoin price surged above $60k, registering a new all-time high. Meanwhile, ETH prices were subdued, pacing below $2k in the face of bullish traders.
The more ETH flows from custodial wallets, the lower the selling pressure is, signaling support for ETH/USD prices and improving investor sentiment. Ethereum is dynamic, and ETH is useful in DeFi or Eth2 staking. According to Etherscan, over $4 billion of ETH is staked, securing the Eth2 network. Validators, as compensation, earn decent near risk-free yields by proposing blocks. Accordingly, if this guides, odds of the ETH price recovering and surging above $2k remains high, a net positive for prices.
Impact on ETH prices:
Bullish. ETH may turn higher as sell pressure fizzles due to changing investor sentiment. Outflow from centralized exchange signal confidence in ETH—and by extension DeFi, bullish for ETH/USD prices.
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