Ethereum exchange withdrawals worth $1.84 billion indicate confidence, but challenges remain
Ethereum is seeing a major shift in market activity. According to Glassnode, 540,000 ETH worth $1.84 billion were withdrawn from exchanges over the past month.
This indicates reduced selling pressure and increased long-term holding – a strong vote of confidence in Ethereum’s potential despite recent poor performance.
540,000 $ Ethereum ($1.84 billion) was withdrawn from exchanges last month, according to Glassnode.
This indicates reduced selling pressure and increased long-term holding – a clear vote of confidence in Ethereum’s future.
pic.twitter.com/nob1fM5Lz6
-Kyledoops (@kyledoops) January 20, 2025
Whales are showing renewed interest in Ethereum
Despite Ethereum’s sluggish performance and changes in the Ethereum Foundation’s leadership team, whales have been actively accumulating ETH. Over $1 billion worth of ETH was purchased last week, coinciding with the withdrawal of nearly $2 billion from exchanges, indicating high buying pressure and long-term optimism.
$ Ethereum It’s been one of the weakest performers of late, even @VitalikButerin I decided to shake things up by making a change #Ethereum The organization’s leadership team.
But is it time to give up on it? #Ether? Let’s take a closer look
– Ali (@ali_charts) January 20, 2025
Historical trends and resistance levels
Historically, Ethereum tends to perform well in the first quarter, and analysts remain optimistic about its prospects. However, for ETH to confirm the bullish breakout, it must overcome key resistance levels. On-chain data highlights the $3,360 to $3,450 range as a major supply wall. Meanwhile, technical analysis indicates that ETH is forming the right shoulder of a head and shoulders pattern, with a neckline at $4,000. A break above this level could lead to a rally towards $7,000, in line with Ethereum’s 3.2 MVRV pricing range.
Slowing network growth raises concerns
One worrying trend is the declining growth of the Ethereum network. The number of new ETH addresses decreased by 9.32%, indicating low adoption. This may pose challenges to long-term growth unless network activity rebounds.
The institution is selling ETH amid market uncertainty
The Ethereum Foundation sold 200 ETH ($672,000) in 2025 at an average price of $3,361. ETH remains 31% below its all-time high of $4,878, while Bitcoin has surged to a new record high of $109,000.
[ATTENTION] The Ethereum Foundation just sold another 100 coins $ Ethereum For 336,475 $DAI!
In total, they sold 200 $ Ethereum ($672K) in 2025 with an average price of $3,361 over the past 12 days.$ Ethereum It is still 31% below the 2021 ATH of $4,878, while $ Bitcoin I reached a new ATH of $109k today!… https://t.co/9CWWVsrfhj pic.twitter.com/ZOr504i1HG
– Spot on Chain (@spotonchain) January 20, 2025
Final thoughts
The future of Ethereum looks promising with high accumulation and low selling pressure. However, overcoming resistance levels and addressing the slowdown in network growth is crucial for ETH to regain its position as a high-performing asset.
Disclosure: This is not trading or investment advice. Always do your research before purchasing any cryptocurrency or investing in any services.
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