Over 1 million Ethereum (ETH) has been withdrawn from cryptocurrency exchanges in a major shift driven by whale activity, reducing exchange reserves to unprecedented lows according to CryptoQuant analytics. The withdrawals, valued at approximately $3.7 billion based on current prices, signal a strategic move toward long-term holding and staking rather than short-term trading. CryptoQuant analysts emphasized: "Large purchases often hint at long-term conviction... Many are moving coins into self-custody or long-term holdings."
Concurrently, an anonymous whale deposited 8,231 ETH ($31.23 million) into Binance after unstaking from Ethereum's Layer-2 network Blast. This whale previously generated over $12 million in profits through Blast's yield farming and airdrops since depositing 45,000 ETH ($102 million) in December 2023. While this isolated deposit raises short-term selling concerns, analysts note its scale is dwarfed by the broader withdrawal trend.
Historically, such mass withdrawals precede ETH price rallies due to tightened exchange liquidity. The current reduction could amplify buying pressure as available supply diminishes, though the Binance deposit may introduce minor volatility. Market dynamics reflect a growing preference for staking and self-custody, with network data indicating parallels to pre-bull market conditions observed during major protocol upgrades.