There is a historic outflow of Ethereum from Binance. Bullish signal or not?
The rate of withdrawals of the ether (ETH) cryptocurrency to wallets drives bullish market expectations.
The Ethereum logo shoots up like a rocket into the sky.
Ether (ETH) needs a price catalyst to take off. Source: GROK.
ETH withdrawals from exchanges to wallets are interpreted as a bullish signal.
Investors in ETH remain optimistic despite the poor performance of the cryptocurrency.
9.6 million ether (ETH) and 1.1 million bitcoin (BTC) have been withdrawn from exchanges over the last month, with Binance dominating 49% and 22%, respectively, of such outflows.
The percentage of ETH withdrawals on Binance is an unprecedented figure, according to data from the CryptoQuant explorer. This raises bullish expectations for its market, given that cryptocurrency outflows from exchanges usually indicate that investors do not plan to sell their holdings in the short term.
However, it is worth noting that this milestone occurs in a context where ETH and BTC withdrawals from all exchanges (not just Binance) have been declining at the same time. Therefore, the record outflow ratio of ether on Binance reflects a divergence.
This divergence suggests a concentration of withdrawal activity towards Binance, indicating that users are increasingly choosing it as an exit route for Ethereum, even as overall exchange withdrawals slow down," says the analyst known as Crazzyblock.
In the following chart, the record percentage of outflows of the Ethereum cryptocurrency that has reached Binance can be appreciated.
According to the analyst, the increasing outflow share from a single exchange within a declining total withdrawal flow environment may imply unique user behavior. He elaborates that it could be part of institutional movements, custody changes, or particular strategic withdrawals on the platform that diverge from broader market trends.
Therefore, Crazzyblock warns that the current context forces traders to be cautious and exercise caution when analyzing movements to make price projections for ETH.