Key Takeaways
How much ETH left exchanges this week?
Nearly $700 million worth of Ethereum flowed off centralized exchanges this week, marking one of the largest outflow periods since August.
Is this accumulation phase bullish for ETH?
Historical patterns indicate that exchange outflows, combined with oversold technical indicators [RSI at 32.22], often precede price recoveries.
Ethereum holders pulled nearly $700 million worth of ETH off centralized exchanges this week. The massive outflow signals growing accumulation despite a sharp 17.2% price decline that pushed ETH down to $3,297.
Source: Sentora
Analytics firm Sentora reported the $696 million weekly outflow today. The firm noted that while much of the withdrawn ETH likely moved to DeFi protocols, the exodus still meaningfully reduces potential selling pressure on centralized exchanges.
Outflows signal long-term conviction
Exchange outflows typically indicate bullish sentiment. When investors move coins off exchanges, they transfer assets to cold storage or DeFi platforms for staking and yield generation.
This removes immediate selling pressure from the market.
The CryptoQuant data shows Ethereum saw sharp consecutive negative netflows this week. Green bars on the exchange netflow chart represent outflows, with this week’s withdrawal ranking among the largest since August.
Source: CryptoQuant
The pattern suggests accumulation by larger holders who view current prices as attractive entry points.
Ethereum price drops, but network activity surges
Ethereum traded at $3,285 as of press time, down from approximately $3,980 a week ago. The daily chart shows a steady decline since mid-October, with ETH losing roughly 30% from recent highs near $4,800.
Despite the price pressure, on-chain metrics paint a different picture. Total network fees jumped 63.5% week-over-week to $8.26 million.
Source: TradingView
Rising fees indicate increased transaction activity and network usage, suggesting the ecosystem remains vibrant even as speculators exit.
The Accumulation/Distribution indicator on TradingView shows declining distribution pressure since September.
Meanwhile, the RSI sits at 32.22, approaching oversold territory that historically precedes price rebounds.
DeFi demand drives withdrawals
Sentora emphasized that much of the outflow likely supports DeFi activity rather than cold storage alone. Ethereum’s DeFi ecosystem continues attracting capital for lending, staking, and liquidity provision.
Data from DefiLlama shows that it holds the largest share of the DeFi TVL, with over $70 billion.
The combination of exchange outflows, rising network fees, and oversold technical indicators creates a potentially bullish setup.
If sell pressure continues declining while on-chain activity grows, ETH could find support at current levels.
Possible recovery for ETH
Historical patterns show exchange outflows often precede price recoveries. Reduced exchange supply makes it easier for demand to push prices higher.
However, broader market conditions and macroeconomic factors will ultimately determine whether accumulation translates to gains.
For now, the data suggests Ethereum holders are using the dip to increase positions. Whether this accumulation phase leads to a sustained rally remains to be seen.
