Ethereum Price Rebounds 5% as Investors Withdraw $380M from Exchanges

Ethereum has recently shown signs of recovery, with its price climbing to $1,847 after a dip below $1,750 at the end of April. This rebound comes after a period of volatility, with price movements fluctuating between $1,740 and $1,847 over the past week. This price action aligns with shifting investor behavior, particularly on centralized exchanges, where a significant amount of Ether has been withdrawn in the past seven days.

According to IntoTheBlock, over $380 million worth of Ethereum was withdrawn from centralized trading platforms in the past week. This net outflow indicates an increasing trend of accumulation among crypto investors, who are moving their assets into self-custody, a sign of long-term conviction. The data chart highlights five consecutive days of negative exchange netflows across aggregated platforms spanning 19 crypto exchanges. The last positive inflow of Ethereum on these exchanges was on April 27, with $50 million worth of ETH. Just 24 hours prior, these exchanges witnessed a negative outflow of $166.68 million worth of Ethereum. This dynamic suggests that Ethereum investors may be preparing for a rally.

Significant exchange outflows are known to precede notable bullish advances, and the current behavior mirrors previous price action where decreasing exchange balances acted as a precursor to sustained rallies. Notably, the current withdrawal trend coincides with the Ethereum price pushing back above the $1,800 mark. The ongoing accumulation is further supported by crypto analyst Ali Martinez, who pointed out a crucial Ethereum support level at $1,770. According to Martinez, the $1,770 region is currently the most significant level for Ethereum in the short term, citing data from IntoTheBlock’s “In/Out of the Money Around Price” model. The In/Out of the Money Around Price model shows a high concentration of wallets (roughly 4.5 million addresses) having acquired 6.36 million ETH between $1,772 and $1,824. These holders are now “in the money” following Ethereum’s return to $1,845, which makes this zone a psychological stronghold.

The implication of this support zone is clear. If Ethereum sustains above this demand cluster, the probability of further upward movement increases. However, any retracement below $1,770 could invalidate the current bullish structure and expose Ethereum to downside volatility. For now, the net flows from exchanges indicate that Ethereum might be able to hold its ground around this $1,770 level. The less Ethereum available on exchanges, the less selling pressure. On the other hand, the next resistance cluster to get above in the short term is at $1,881. At the time of writing, Ethereum is trading at $1,845, up by 1% in the past 24 hours.