The second largest cryptocurrency Ethereum has seen some major trading activities. Famous crypto analyst, Ali Charts took to X(Twitter) and noted that over 300,000 ETH, which is worth approximately $750 million were withdrawn from crypto exchanges in the past week.
This development comes as Ethereum’s price shows a modest uptick of 1.30% in the past 24 hours, trading at $2,509.20. However, it remains down by 7.98% from last week’s prices, reflecting ongoing market volatility. The global Ethereum market cap currently stands at $302.67 billion, with a 24-hour trading volume increase of 8.27%.
Is a Price Drop for ETH Coming?
Now, based on the reporting, these kinds of investor moments can mean two things. It can either mean that their ETH holdings are shifted into private wallets or staking platforms, which can eventually decrease the potential of immediate selloff. Such moves can have a positive effect on Ethereum’s price.
This can also have a negative effect on Ethereum’s price, as we still have to see, where are these Ethereum going after being withdrawn from the exchanges.
To recent developments related to Ethereum the co-founder, Vitlik Buterin recently released the fifth instalment of his blog series on the future of Ethereum, which is titled “The Purge.”
The Purge aims to reduce data bloat on the Ethereum blockchain by cutting unnecessary data storage and eliminating outdated features, making the protocol more efficient without compromising the blockchain’s integrity.
The Concerns Related to ETH’s Gas Fees
The Purge does not address one of Ethereum’s main concerns which is the gas fees. However, this protocol approach could enhance Ethereum network performance and reduce operating costs for developers and validators. This eventually will also support the network capability as Ethereum continues to grow and attract more users.
The combination of significant ETH withdrawals from exchanges and network optimization plans is a promising outlook for Ethereum’s price performance and its future. Ali Chart’s report on the ETH withdrawals also indicates a possible shift towards long-term holding sentiment which could help to stabilize Ethereum’s price.