Centralized Exchanges Saw $1.2B Ether Withdrawn In Record Outflow

Centralized exchanges saw $1.2 billion Ether getting withdrawn in a record outflow on a daily basis and it’s teh second time this year so the price can shift soon as we are reading more in our latest Ethereum news today.

More than $1 billion worth of Ether was removed from centralized exchanges over the past day which led to speculation about the imminent price gains for Ether as the supply is shrinking on many other trading venues. According to the data shared by analytics provider IntoTheBlock, the $1.2 billion worth of ETH was withdrawn from centralized exchanges to mark a new record in the short-term outflow from exchanges.

IntoTheBlock noted that Ether’s price rallied by 60% over the past month after $1 billion was pulled from the centralized trading platforms in April. The situation changed since April but last month’s London upgrade introduced a burn mechanism into the ETH fee market which only increased the deflationary pressure on the ETH supply dynamics. At the time of writing, 309,505 ether that was worth $1.1 billion were burned in the past 42 days since Ethereum’s Improvement Proposal 1559 went live. Ether was removed from the supply at a rate of 5.05 ETH each minute or $26 million since the upgrade. The booming NFT marketplace OpenSea is the leading decentralized application for Ethereum by burn rate and represents more than 14% of the ETH that was removed from the supply followed by Uniswap with 5.5% and Ether with 4.9%.

Bitcoin also saw some steady outflows from centralized trading venues since peaking at 17% of the supply in May and according to the on-chain analytics firm Glassndoe, the centralized exchanges BTC rivers dropped to their lowest since February 2018.

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ETH 24-hour Price Chart (Source: Coingecko)

As recently reported, Ethereum remains at risk and struggles to climb above $3500 against the US dollar and failed to clear the $3450 level thus starting a new decline. The price is now trading well below the $3400 and the 100 hourly simple moving average and there’s a major bearish trend line that formed with resistance close to $3400 on the hourly chart of ETH/USD. The pair could extend its decline if there’s a new break below the $3200 support zone. ETH struggled to clear the $3450 resistance and failed to stay above the 100 hourly simple emoving average but a new high was formed near $3450 and the price started a new decline similar to BTC. There was even a break below the $3350 and the $3250 support levels while ETH traded below the 50% fib retracement level of the upward move of $3148 swing low to $3450 high.

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Author: Stefan