Ethereum News Today: Ethereum falls 8.3% as $1.15B exits exchanges, rebounds 5.4% to $3,732 amid self-custody shift

Ethereum’s price decline from $3,843 to $3,543 between July 21 and July 24 coincided with a $1.15 billion outflow of over 310,000 ETH from centralized exchanges, suggesting investor accumulation rather than selling pressure. This movement, observed over 72 hours, aligns with historical patterns where reduced exchange balances precede price rebounds. The outflows, reported by COINOTAG, reflect a shift toward self-custody and decentralized staking, which may ease immediate liquidity risks on exchanges [1].

Data from IntoTheBlock indicates that 91% of Ethereum holders are currently profitable, with 75% of these positions held for over a year. This long-term confidence, coupled with large holders controlling 55% of the supply, underscores a structural resilience in the market. Recent weekly transaction volumes reached $108.72 billion, further highlighting sustained demand [2]. Notably, Ethereum’s price rebounded to $3,732 after the July 22–24 outflows, reinforcing the correlation between reduced exchange supply and upward momentum.

Ethereum’s exchange reserves have shown a consistent decline, with a seven-day net flow of negative $3.21 billion, suggesting assets are being redirected to staking platforms or personal wallets. This trend mirrors Bitcoin’s price movements, with a 0.86 correlation coefficient. However, Ethereum’s distinct accumulation patterns—driven by long-term holder behavior—indicate divergent investor strategies that may influence short-term dynamics independently [3].

The reduction in exchange-based sell pressure is further supported by minor inflows recorded on July 22 and 23, which coincided with brief price dips attributed to short-term profit-taking. Analysts note that such temporary fluctuations are typical in markets with high long-term holder participation, as large stakeholders are less likely to engage in reactive trading [4].

Market observers highlight that the current outflows contrast with prior bearish periods, where elevated exchange balances often exacerbated sell-offs. This divergence, combined with the profitability of 91% of holders, signals a more stable market environment. The interplay between Ethereum’s price and Bitcoin remains a key factor, but Ethereum’s unique on-chain metrics suggest a growing autonomy in its price trajectory [5].

In summary, Ethereum’s recent outflows, coupled with strong long-term holder confidence and declining exchange reserves, present a case for potential price resilience. The alignment with Bitcoin’s movements and the broader shift toward self-custody models further underscore a maturing ecosystem. Investors are advised to monitor these trends for insights into Ethereum’s near-term direction.

Source: [1] [Ethereum Exchange Outflows Suggest Potential Accumulation Amid Price Dip and Reduced Sell Pressure] [https://en.coinotag.com/ethereum-exchange-outflows-suggest-potential-accumulation-amid-price-dip-and-reduced-sell-pressure/]. [2] [Ethereum Market Outlook] [https://en.coinotag.com/ethereum-exchange-outflows-suggest-potential-accumulation-amid-price-dip-and-reduced-sell-pressure/]. [3] [Ethereum Holders Chart] [https://en.coinotag.com/ethereum-exchange-outflows-suggest-potential-accumulation-amid-price-dip-and-reduced-sell-pressure/]. [4] [ETH Spot Inflow/Outflow Chart] [https://en.coinotag.com/ethereum-exchange-outflows-suggest-potential-accumulation-amid-price-dip-and-reduced-sell-pressure/]. [5] [Ethereum Holders Distribution] [https://en.coinotag.com/ethereum-exchange-outflows-suggest-potential-accumulation-amid-price-dip-and-reduced-sell-pressure/].