Ethereum rises as 361,000 ETH leaves exchanges

Ethereum (CRYPTO:ETH) recorded a price increase of over 7% in the past week, despite cautious behavior among major holders. 

According to analysts, the market sentiment appears mixed due to contrasting signals from technical indicators and large investors. 

On October 25, a significant outflow of 361,000 ETH from exchanges was observed, marking the largest withdrawal since May 30. 

This move suggests confidence among long-term holders who might be securing their assets outside of exchanges. 

As noted by analysts, "Large-scale withdrawals often indicate that holders are opting for long-term storage." 

Positive EMA lines further reinforce a bullish trend, indicating the possibility of more gains if the uptrend sustains. 

However, ETH’s net transfer to exchanges turned positive on October 29, with around 35,000 ETH moved, typically suggesting bearish sentiment. 

Increased supply on exchanges often correlates with potential selling pressure, which could weigh on the price in the short term. 

Whale activity remains a point of interest. 

The number of addresses holding at least 1,000 ETH has been in decline, dropping from 5,614 on October 1 to 5,534 by October 30. 

This reduction indicates hesitation among large holders, even as Ethereum’s price grows. 

While a brief increase in whale holdings was noted on October 25, coinciding with the substantial outflow, the trend reversed soon after. 

Based on Glassnode’s data, tracking whale behavior is essential as these investors can significantly impact the market through large-scale transactions. 

A decrease in the number of whales implies a potential lack of confidence, raising concerns about buying support and long-term accumulation. 

At the time of reporting, the market remains in a state of flux, with Ethereum’s price growth being met with cautious whale activity and mixed market signals. 

Analysts emphasise the importance of monitoring these dynamics amid ongoing market uncertainties.

At the time of reporting, the Ethereum price was $2,664.62.