Since the start of December, Ethereum ($ETH) has seen a marked outflow from exchanges, with over 400,000 ETH leaving since December 1.

This trend of accumulation suggests increased confidence among investors, particularly as the price of ETH recently pushed back above the $4,000 mark, solidifying this level as strong support.

Since the beginning of December, the $ETH netflow from exchanges has predominantly been negative.

Over 400k ETH have flowed out since December 1st, suggesting a trend of accumulation. pic.twitter.com/5pD8Ct7SIl

— IntoTheBlock (@intotheblock) December 16, 2024

The demand for Ethereum remains robust, with 7.2 million ETH purchased at prices just under $4,000, indicating that significant interest is building at these levels. This demand is expected to help Ethereum maintain its value above $4,000 in the near future.

As $ETH pushes back above $4000, a strong support level is solidifying just below this threshold.

7.2 million ETH were purchased at prices slightly under $4,000, signaling significant demand. This demand should help sustain Ethereum’s value above the $4,000 level. pic.twitter.com/yAunfqcbY5

— IntoTheBlock (@intotheblock) December 17, 2024

In terms of whale activity, there are currently 104 wallets holding at least 100,000 ETH, collectively accounting for 57.35% of all ETH in circulation—valued at approximately $333.1 billion. In contrast, wallets holding between 100-100,000 ETH now control the smallest share in history, dropping to 33.46%. Additionally, wallets with fewer than 100 ETH have reached a near four-year low of just 9.19%.

While it’s important to note that Ethereum’s ecosystem has evolved, with a significant portion now held in DeFi and staking wallets, this concentration of holdings among whales is generally seen as a bullish signal. When key stakeholders continue accumulating, especially in the case of a nine-year-old asset, it suggests long-term confidence.

Ethereum’s past bull cycles have shown explosive growth when long-term holders shifted into a more aggressive accumulation mode. While we may still be in the early stages of this phase, the potential for a substantial price move remains on the horizon.

On December 16, Ethereum spot ETFs recorded a total net inflow of $51.1 million, continuing a 16-day streak of positive inflows. BlackRock’s Ethereum ETF (ETHA) led the charge with $30.7 million in a single day.

On December 16, the total net inflow of Ethereum spot ETFs was $51.1256 million, and the net inflow continued for 16 days. The Ethereum spot ETF with the largest net inflow in a single day yesterday was BlackRock ETF ETHA, with a net inflow of $30.7235 million in a single day.… pic.twitter.com/H0PpxbLNxS

— Wu Blockchain (@WuBlockchain) December 17, 2024

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!

Image Source: nexusplexus/123RF // Image Effects by Colorcinch