Between February 8 and 9, a significant amount of Ethereum was moved from centralized exchanges, a potential sign of increasing investor confidence in its long-term potential.
Rising Ethereum Accumulation
According to Santiment, there are currently 9.63 million ETH in exchange wallets, the lowest since August 2024. Analysts suggest that withdrawing assets from exchanges may indicate a preference for holding them long-term. The decrease in ETH on exchanges coincides with a 2.3% increase in the number of large holders since early February. "When assets are moving away from exchanges, it is typically a signal of confidence by investors, who are content with holding for the long-term," stated a Santiment representative.
Mixed Market Signals
Despite positive sentiments, hedge funds have significantly increased short positions on ETH, up 40% in a week and 500% since November 2024. This could lead to a 'short squeeze' where rapid price increases force sellers to buy back assets, further elevating their price. Meanwhile, Ethereum recorded record inflows into ETFs last week, exceeding $854 million, reflecting institutional investor support.
Current Ethereum Price Dynamics
At the time of writing, Ethereum is trading at $2,715, a 2.6% increase over the past 24 hours. However, the coin's value has dropped by 15% and 16.1% across two weeks and one month, respectively, and remains significantly below its all-time high of $4,878 reached over three years ago.
While the substantial outflow of ETH from exchanges and increased ETF investments may signal trust among major investors, market divergences leave the question of Ethereum's short-term trajectory open.
