Ethereum Worth $1 Billion Moved to Cold Storage, ETH Price Rally Ahead?
Highlights
- A staggering 500K Ethereum have been withdrawn from exchange wallets recently.
- Analysts expect Ethereum (ETH) to reach $3,000 by Q2 amid recent Dencun upgrade.
- Spot Ethereum ETF approval chances can provide further fuel to ETH price
The world’s second-largest cryptocurrency Ethereum (ETH) has been largely consolidating around $2,300 levels for a while with on-chain indicators suggesting a potential strong upside going ahead. As the Ethereum Dencun upgrade nears its debut, analysts are expecting 50-60% gains going ahead.
Substantial Ethereum Outflow from Exchange Wallets
In recent findings shared by crypto analyst Ali Martinez, it has been revealed that over the past three weeks, a noteworthy amount of nearly 510,000 Ethereum (ETH) has been withdrawn from identifiable cryptocurrency exchange wallets. The total value of this substantial outflow is estimated to be around $1.22 billion.
This development suggests a robust sentiment among ETH holders, indicating a potential reduction in selling pressure within the market. The significant movement of ETH away from exchange wallets may signify a shift in the dynamics of Ethereum ownership and the overall market sentiment.
In an interesting development, a mysterious 9-year-old Ethereum wallet reactivated recently, holding 492 ETH worth $1.1 million. The Ethereum wallet in question probably obtained its tokens during Ethereum’s Initial Coin Offering (ICO), a period when the price of ETH was approximately 31 cents.
ETH Price Targets Going Ahead
In the latest analysis by crypto analyst Michael van de Poppe, ETH is observed to be resilient, maintaining a crucial support level at $2,150. The sustainability of this support level, coupled with a persistent upward trend, fuels van de Poppe’s belief that ETH has the potential to surpass $3,000 in the second quarter of the year. However, there are some key obstacles that investors should be wary about.
Van de Poppe remains optimistic about Ethereum’s trajectory, projecting a target range of $3,500 to $4,000 within the next 3 to 6 months. Several contributing factors contribute to this bullish outlook, including the upcoming Dencun upgrade, set for its final testnet on February 7th.
Additionally, the anticipation surrounding an Ethereum Spot ETF and a potential rotation of Bitcoin investments toward the broader crypto ecosystem post-halving are cited as catalysts for Ethereum’s positive momentum.
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