Summary
- Binance recorded net outflows of more than 3 million ETH in May, with withdrawals of more than 500,000 ETH in a single day, according to the analyst.
- The analyst said ETH prices were holding steady near $2,300 as large investors and institutions appeared to be moving ETH off exchanges for long-term holding and accumulation.
- The analyst said a drop in ETH held on exchanges could mean a smaller pool of tokens available for sale in the spot market and an easing of selling pressure, with the market watching ETH accumulation by institutions and whale investors.
Forecast Trend Report by Period
Binance has recorded heavy Ether withdrawals so far in May, fueling speculation that some investors are shifting into long-term holdings.
Crypto analyst Arab Chain wrote in a CryptoQuant post on May 12 that Binance has seen net outflows of more than 3 million ETH this month.
Daily withdrawals topped 500,000 ETH on at least one occasion, according to the post.
Arab Chain said the market is paying attention because the move came as Ether held near $2,300.
The transfers have also prompted analysis that large investors and institutions may be moving ETH off exchanges for long-term holding and accumulation.
A decline in Ether held on exchanges typically reduces the amount available for sale in the spot market.
That could ease selling pressure over the medium to long term, the analysis said.
The market is watching whether ETH accumulation by institutions and whale investors will influence future price moves.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
