TLDR
- 20.8 million ETH withdrawn from centralized exchanges in the last two months, with Binance accounting for 7.8 million ETH (33-39% of total outflow)
- ETH is currently trading at $3,858, down 2.4% in 24 hours and 21.1% below the all-time high of $4,878
- Deutsche Bank has reportedly developed the Layer-2 blockchain on Ethereum using ZKsync technology
- ETH has underperformed Bitcoin, posting only a 2.3% gain compared to Bitcoin’s 5% gain over the past week
- Technical analysts suggest potential price correction to $3,400 based on bearish chart patterns
A real change in Ethereum market dynamics have emerged over the past two months, with data showing massive withdrawals from centralized exchangesespecially Binance. According to CryptoQuant, around 20.8 million ETH have been moved from exchanges during this period, reflecting patterns seen during the 2021 bull market.
Binance, the world’s largest cryptocurrency exchange, has been at the center of this movement. The platform has recorded withdrawals of over 7.8 million ETH, representing between 33% and 39% of the total outflow from all centralized exchanges combined.
The price of Ethereum is currently at $3,858, showing a decrease of 2.4% in the last 24 hours. This puts the second-largest cryptocurrency by market capitalization about 21.1% below its all-time high of $4,878, which was reached in 2021.
CryptoQuant analyst Crazzyblockk suggests that these withdrawals may indicate investors are accumulating ETH for long-term holdings or staking purposes. The scale of these moves by Binance is particularly notable given the exchange’s global reach, with a user base of 250 million and reported deposits of $21.6 billion this year.
The timing of these withdrawals coincides with news that Deutsche Bank, Germany’s largest lender, is reportedly developing its own Layer 2 blockchain solution on Ethereum using ZKsync technology. This development represents another major financial institution stepping into the Ethereum ecosystem.
Despite this seemingly positive development, Ethereum’s price performance has lagged Bitcoin during the recent crypto market rally. While Bitcoin has consistently hit new record highs in recent months, Ethereum has struggled to break through the $4,000 resistance level.
JUST IN: Deutsche Bank is building its own Layer-2 on Ethereum – Bloomberg pic.twitter.com/5O5K3R1fRg
— Radar🚨 (@RadarHits) December 18, 2024
This past week’s trading data highlights this difference, with ETH showing a modest 2.3% gain compared to Bitcoin’s more robust 5% gain over the same period. This underperformance comes even as institutional interest in Ethereum appears to be growing.
Technical analysts have identified potential bearish signals in the Ethereums price chart. Some market observers point to the formation of a bearish double top pattern, accompanied by bearish divergence in the Relative Strength Index (RSI) and a Moving Average Convergence Divergence (MACD) crossover confirming the downtrend.
These technical indicators suggest a possible price correction to the $3,400 level, with major support levels established at $3,200 and $3,000. However, trading volumes remain relatively stable, indicating no immediate signs of panic selling.
The outflow of exchanges has reduced the available supply of ETH on trading platforms, which usually creates upward pressure on prices if demand remains stable or increases. However, this traditional market dynamic has not yet manifested itself in higher prices.
Market data shows that the withdrawal pattern has been consistent rather than sudden, suggesting a methodical approach by ETH holders rather than reactive movement to market events. The stable nature of these withdrawals means long-term strategic positioning of investors.
Binance’s role in these withdrawals has attracted particular attention from market analysts. The exchange’s influence on the cryptocurrency market remains significant, as evidenced by its ability to process such large-scale movements of ETH without causing major market disruption.
The current price action comes against a backdrop of a broader maturation of the cryptocurrency market, with traditional financial institutions increasingly engaging with blockchain technology. Deutsche Bank’s reported layer-2 development represents just one example of this trend.
Daily trading volumes for ETH have remained within normal ranges despite the large currency outflows, indicating that market liquidity has not been significantly affected by the withdrawals. This stability in trading activity indicates that the market has absorbed the changes in the currency balance without major disruptions.
Recent price data shows ETH trading in a consolidation pattern between $3,800 and $4,000, with neither bulls nor bears gaining clear control of market momentum. The last trading session closed at $3,858, with volume indicators showing neutral market sentiment.
