Data shows Ethereum has recently observed its highest exchange net outflows in around two years, something that can be bullish for the ETH price.
Ethereum Exchange Flow Balance Has Seen A Deep Red Spike Recently
According to data from the on-chain analytics firm Santiment, investors have been withdrawing ETH from exchanges recently. The indicator of relevance here is the “Exchange Flow Balance,” which keeps track of the net amount of Ethereum that’s entering into or exiting out of the wallets associated with all centralized exchanges.
When the value of the metric is positive, it means the exchange inflows are outweighing the outflows. As one of the main reasons why investors may deposit their coins to these platforms is for selling-related purposes, this kind of trend can lead to a bearish outcome for ETH.
On the other hand, the indicator being under the zero mark suggests the holders are making net withdrawals from the exchanges. This kind of trend can be a sign that the investors are looking to hold into the long term, which can naturally be bullish for the asset’s price.
Now, here is a chart that shows the trend in the Ethereum Exchange Flow Balance over the last few months:
The value of the metric appears to have been red in recent days | Source: Santiment on X
As is visible in the above graph, the Ethereum Exchange Flow Balance has seen a couple of large negative spikes recently, which means that a large amount of ETH has left the exchanges.
During this outflow spree, the asset saw a 24-hour period with some historically high withdrawals. As Santiment explains,
There was a historic milestone of ~224,410 ETH moving away from exchanges in the 24 hours between February 8th and 9th. This was the most amount of net coins moving off of known exchange wallets in a single day in 23 months.
At the current exchange rate of the cryptocurrency, this 224,410 ETH amount converts to around $596 million. In the same chart, the analytics firm has also attached the data of another indicator known as the Supply on Exchanges, which measures the total amount of ETH sitting on exchanges. These large outflows have meant that this metric has witnessed a sharp plummet to 9.63 million ETH, which is the lowest level since August of last year.
The Ethereum price has been struggling recently, but the fact that the large investors of the market have been making net withdrawals could be a positive sign for things to come. That said, Santiment also cautions, “just be mindful of the fact that Ethereum’s performance in 2025 will still largely be dictated by Bitcoin’s own ability to stay afloat and try to rebound back to ATH levels.”
ETH Price
Ethereum has been unable to make any notable recovery from its crash earlier in the month as its price is still floating around the $2,600 mark.
Looks like the price of the coin has been trading sideways recently | Source: ETHUSDT on TradingView
Featured image from Dall-E, Santiment.net, chart from TradingView.com
