Ethereum Whales Withdraw 1 Million ETH Reducing Supply by 5.5%

Ethereum whales recently withdrew 1 million ETH from exchanges over a span of four weeks, resulting in a 5.5% reduction in the overall supply of Ethereum held by exchanges. This significant withdrawal began in mid-April and continued until mid-May 2025, reducing the supply from 18 million to 17 million ETH. The move by these large holders, often referred to as whales, has historically been seen as a bullish indicator, suggesting confidence in the asset's future performance.

On May 12, 2025, the number of whales hit an all-time high, with major crypto holders scooping up 325,000 ETH within 24 hours. This was the most amount ever taken in by big accumulation addresses in a single day, according to data shared by CryptoQuant. This accumulation move by whales has had a significant impact on the price of Ethereum, which surged to $2,485.37 as of May 20, 2025. The price has increased by 3.81% in the last 24 hours and has risen by 57.67% in the past month, indicating a rapid upward trend.

The withdrawal of such a large amount of ETH from exchanges indicates that these whales are likely holding onto their assets for the long term, rather than selling them for immediate profit. This behavior is often interpreted as a sign of bullish sentiment, as it reduces the supply of ETH available for trading, which can drive up the price. The buying frenzy that followed the withdrawal further supports this interpretation, as it suggests that other market participants are also optimistic about Ethereum's prospects.

The price surge to $2,485.37 is a notable increase from previous levels, and it reflects the growing interest and confidence in Ethereum as a leading cryptocurrency. The prediction of a potential rise to $3,500 is based on the current market dynamics and the historical behavior of Ethereum in response to similar events. However, it is important to note that market predictions are subject to various factors and can change rapidly.

The withdrawal of 1 million ETH from exchanges is a significant event in the cryptocurrency market, as it highlights the influence of large holders on the price and sentiment of Ethereum. The subsequent buying frenzy and price surge demonstrate the market's response to this event, and they underscore the potential for further growth in the value of Ethereum. As the market continues to evolve, it will be interesting to see how these dynamics play out and whether the predictions of a rise to $3,500 will be realized.