Ethereum, not afraid of a $100 million sell-off bomb..."Exchange Holdings Lowest Since 2016"

▲ Ethereum (ETH)/AI Generated Image

Ethereum (ETH) is simultaneously showing strong rebound signals across various on-chain indicators, despite concerns about selling pressure due to large institutional movements. The decrease in exchange holdings combined with an increase in network activity indicates a rapidly changing market structure.

FXStreet reported on April 28 (local time) that Galaxy Digital transferred approximately 45,000 ETH, worth about $100 million, to Binance, Bybit, and OKX. Typically, large deposits to exchanges are interpreted as a signal of increased selling potential, and indeed, after this news, Ethereum's price fell by about 4%, dropping to the $2,288 level. However, there is also a possibility that this movement was simply processing customer orders.

On-chain data shows a completely different trend. According to CryptoQuant, Ethereum holdings on exchanges have decreased to their lowest level since 2016, at approximately 14.5 million ETH. Notably, the amount withdrawn from exchanges since April 19 reached 331,000 ETH, significantly exceeding recent deposits. A reduction in exchange supply acts as a structural factor that maximizes upward price pressure when buying interest flows in.

Network activity is also showing strong expansion. Ethereum's 100-day active address average has hit an all-time high of approximately 587,000. This signifies a real increase in users and expanded ecosystem utilization, leading to the assessment that the current price trend is decoupled from on-chain fundamentals.

Institutional investors continue their buying spree. BitMine purchased 101,901 ETH in the past week, marking its largest weekly purchase this year. Concurrently, the US Ethereum spot ETF market has seen net inflows for three consecutive weeks, indicating continued institutional capital inflow. With increasing demand and decreasing supply occurring simultaneously, circulating supply in the market is being rapidly absorbed.

Investor sentiment is also shifting towards recovery. The Fear & Greed Index has risen from 12 a month ago to 47 currently, approaching the neutral zone. The fact that stablecoin inflows into Binance amounted to approximately $6 billion between March and April suggests that idle capital is preparing to enter the market. Ethereum is increasing its potential to enter a new upward phase within a structure where supply reduction and demand expansion are intertwined.

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