Ethereum Outflow Reaches 23-Month High, Indicating Potential Long-Term Investor Confidence

• Ethereum’s recent surge in exchange outflows marks a significant milestone, reflecting heightened investor confidence amid market uncertainty.

• The 224,410 ETH removed from exchanges in just 24 hours highlights the growing desire among investors to hold rather than trade.

• “When exchange outflow surges, it implies that investors are actively buying the asset and anticipate prices to recover,” stated a Santiment analyst.

Ethereum’s exchange outflows hit a 23-month high, signaling increased investor confidence and potential for future price recovery.

Ethereum Outflow Hits 23-Month High

According to Santiment, Ethereum has witnessed significant withdrawals from exchanges, with 224,410 ETH moving off platforms between February 8 and 9. This level of outflow is indicative of a broader trend where investors prefer storing their assets rather than trading them, indicating a long-term bullish sentiment.

Source: Santiment

The trend continued on February 10 with a staggering 768,500 ETH in outflows, marking the largest volume withdrawn in nearly two years. Such patterns suggest that market participants are increasingly optimistic, actively accumulating ETH while anticipating future price surges.

Source: CryptoQuant

Despite short-term price fluctuations, the significant outflow signals a robust long-term outlook. Investors’ willingness to withdraw their ETH indicates they expect price recovery and growth in the coming months, likely reducing opportunities for sudden sell-offs.

Any Impact on ETH?

The rise in ETH outflow seems to correlate positively with Ethereum’s trading value. Currently, ETH is trading around $2,716, a increase of 2.84% on the daily charts, suggesting bullish momentum is gaining traction.

Source: CryptoQuant

Institutional interest has surged, as indicated by a positive Coinbase premium index throughout the week. This trend underscores that institutions are recognizing Ethereum’s potential and are strategically accumulating during this accumulation phase.

Source: IntoTheBlock

The increasing net inflow situations among large holders further affirm the market’s bullish stance. From February 5 onwards, large holders have experienced six consecutive days of positive net inflows, indicating that whales are purchasing ETH more aggressively than they are selling, which is a strong bullish signal.

Read Ethereum’s [ETH] Price Prediction 2025–2026

To summarize, the growing exchange outflow and institutional accumulation suggest a strong bullish trend for Ethereum. If demand continues and Bitcoin goes beyond the $3,000 resistance, Ethereum could potentially test and breach that threshold. However, there is also a downside risk; should selling pressure increase, a drop to $2,591 could be possible.

Conclusion

In conclusion, Ethereum’s recent outflows and positive market indicators not only reflect a confident investor base but also set the stage for potential price recoveries in the near future. Investors and traders alike should monitor these trends closely as they may provide valuable insights into market movements.