On-chain Data Shows $1.8 Billion Worth of Ethereum Withdrawn

On-chain data revealed approximately 845,000 ETH worth $1.8 billion left exchanges last week, the largest outflow since December 2022. These withdrawals suggest that investors are moving ETH to private wallets for long-term accumulation.

Significant Outflows and Market Trends

CoinMarketCap data indicates that Ethereum has experienced increased volatility this past month, losing over 50% of its value since December 2024. Currently trading at $2,073, ETH faced a 4% decline over the last 24 hours. This volatility follows President Trump’s announcement regarding a U.S. crypto reserve that includes Ethereum.

> Massive $1.8B outflow from exchanges last week – biggest since Dec 2022.
>
> — DeFi Protocol Sage 🏛️ (@DeFiProtocolist) March 10, 2025

Investors expressed uncertainty following Trump’s announcement, leading to cautious behavior as Ethereum attempted to regain lost ground. On-chain data shows over 330,000 ETH were withdrawn post-announcement, indicating a shift to private wallets, reducing selling pressure, and promoting long-term accumulation.

Potential Recovery and Market Indicators

According to TradingView, for an ETH recovery to occur, bulls need to maintain the $2,100 support level. A sustained decline past resistance could point to renewed buying momentum, potentially pushing prices higher.

Nansen’s crypto intelligence researchers noted that Ether leaving exchanges signals bullish tendencies. This trend, previously observed with Bitcoin, reflects a broader shift towards self-custody and cold storage strategies. Vugar Usi Zade from Bitget stated that dwindling Ether supply at exchanges signals a shift toward long-term holding rather than short-term trading.

The Role of Staking ETFs in Price Catalysts

Marcin Kazmierczak, CEO of Redstone, pointed out that the potential rollout of staked Exchange-Traded Funds (ETFs) could serve as a price catalyst for Ether, tightening its liquid supply. Joe Lubin from Consensys mentioned that Ether ETF issuers anticipate regulatory approval for staking in 2025.

The U.S. Securities and Exchange Commission (SEC) announced the formation of a crypto task force aimed at developing clarity around digital assets, with the pro-crypto Hester Pierce leading the initiative. Former Polygon financial chief Young Ko suggested that Pierce’s leadership would benefit the industry, as she understands the technology and advocates for builders, potentially facilitating approvals for Ethereum staking ETFs.

Kean Gibert from Lido DAO emphasized that ETH staking-enabled ETFs could materialize with the new administration, noting that current restrictions represent a significant opportunity cost for institutional investors.