Cryptocurrency analyst and trader Ali Martinez says hundreds of thousands of Ethereum (ETH) are leaving crypto exchanges as holders accumulate the native asset of the leading smart contract protocol.
Martinez tells his 43,400 followers on the social media platform X that Ethereum potentially is facing a decline in selling pressure after the crypto asset recorded significant outflows from exchanges in less than a month.
“In the past three weeks, nearly 510,000 ETH have been withdrawn from known crypto exchange wallets, totaling a value of approximately $1.22 billion!
This significant outflow indicates a strong Ethereum holder sentiment and potentially less selling pressure in the market.“
Based on a chart citing data from crypto analytics platform Glassnode, it appears that the amount of Ethereum on exchanges reached a recent high of just under 14.4 million in December but fell to less than 13.65 million in late January.
Ethereum is trading at $2,316 at time of writing.
Next up is the Ethereum rival Cardano (ADA). According to Martinez, if history repeats itself and Cardano mimics its late 2020 price action, the ninth-largest crypto asset by market cap is likely to start its next market expansion in the coming months.
“Should the patterns align and Cardano mirrors its late 2020 price behavior, we can anticipate ADA to remain in a consolidation phase until April 2024, setting the stage for its next bull rally!”
Cardano is trading at $0.496 at time of writing.
Martinez also offers his take on top meme crypto asset Dogecoin (DOGE). The analyst says that DOGE appears to be trading in a tight range on the four-hour chart based on the Bollinger Bands, an indicator that traders use to spot potential periods of increased volatility.
According to the trader, it’s only a matter of time before Dogecoin ignites a big move, although he did not specify his directional bias.
“The Bollinger Bands on Dogecoin four-hour chart are experiencing the tightest squeeze since October 2023, signaling an impending spike in DOGE price volatility.”
Dogecoin is trading at $0.0783 at time of writing.
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Source: https://dailyhodl.com/2024/02/06/about-1220000000-in-ethereum-eth-has-exited-known-crypto-exchange-wallets-in-just-three-weeks-analyst/