Ethereum has hit a significant milestone, with 224,410 ETH moving away from exchanges between February 8 and 9, according to data from Santiment.
This marks the largest net outflow of ETH from exchange wallets in 23 months, a trend often interpreted as a bullish signal for long-term price stability.
What Does This Mean?
Historically, when large amounts of crypto leave exchanges, it suggests investor confidence in holding for the long term, reducing the likelihood of major sell-offs. However, analysts warn that Ethereum’s price action in 2025 will still largely depend on Bitcoin’s ability to recover and maintain strength.
ETH Market Performance and Investor Sentiment
As of now, ETH is trading at $2,713.62, reflecting a 2.52% increase in the last 24 hours. The global market cap stands at $327.12 billion, while 24-hour trading volume has dipped 13.19%.
Despite short-term gains, ETH has declined more than 16% over the past month and has underperformed significantly year-to-date, shedding over 20% in value.
Despite this price weakness, Wall Street bank Citi reports that Ethereum’s fundamentals are strengthening. A recent research note from Citi analysts, led by Alex Saunders, highlights a sharp rise in TVL on the Ethereum blockchain, signalling increased network usage and investor confidence.
Also Read: Donald Trump’s WLFI Buys The Dip, Purchases 86,000 ETH to Bring Total Holdings at $42M
Ethereum ETFs and Political Influence
Another key development is the continued inflows into Ethereum ETFs. Following the U.S. elections in November, Ethereum ETF flows turned positive, accumulating $3.2 billion in total inflows since their launch in July 2024.
Adding to the bullish sentiment, President Trump’s World Liberty Financial has disclosed holdings of over $200 million in ETH, a move that some analysts believe could influence U.S. crypto regulations in favour of Ethereum and the broader blockchain industry.
Interestingly, Eric Trump also made headlines last week when he tweeted: “In my opinion, it’s a great time to add ETH.” The tweet, which was later edited, initially included the phrase: “You can thank me later.” This post quickly gained traction, amassing 13.6 million views and fueling speculation that Ethereum could see growing political and institutional interest.
Ethereum’s Gas Limit Increase and Scalability
Beyond market movements, Ethereum’s network fundamentals continue to improve. Over 50% of Ethereum validators have signalled their support for raising the network’s gas limit, a key step toward enhancing scalability.Â
This upgrade would allow for higher transaction throughput, making the Ethereum network more efficient and capable of handling increased demand.
While Ethereum’s price remains under pressure, key on-chain metrics, institutional adoption, and technical advancements suggest that its long-term outlook remains positive.
The record-breaking ETH exchange outflows, increasing TVL, continued ETF inflows, and growing political influence all indicate that Ethereum is solidifying its position as a dominant player in the crypto space.