The outflow of the Ethereum (ETH) exchange suggests that the ETH rally won’t stop anytime soon


This week, Ethereum (ETH) rebounded well above USD 3500 and hit its new all-time high, increasing its dominance in the crypto market to 17%. On its way up, Ethereum has many major financial giants like Mastercard (NYSE: MA), PayPal (NASDAQ: PYPL), and Bank of America (NYSE: BAC).



Despite a massive 4x spike this year in 2021, Ethereum (ETH) doesn’t seem to be quitting anytime soon. The supply of foreign exchange from Ethereum (ETH) has fallen faster than the foreign exchange inflows. This clearly implies further continued growth and lower risk or other major sell-offs.

Courtesy Santiment

However, it was interesting to pay attention to the behavior of the Ethereum whale’s address. While the number of unlisted ETH whales has doubled in the last eight months, the number of unlisted ETH whales has halved. Below you can see the graphic from Santiment, which shows completely opposite behavior of the exchange and non-exchange whales.

Conversion of Ethereum coins to DeFi and ETH 2.0 deposit contracts

Since the ETH offer is no longer being sold on the stock exchanges, a large number of ETH coins were switched to DeFi protocols (Ethereum-based decentralized finance) at the same time. According to Santiment, the total value of ETH coins blocked in DeFi has doubled in the past three months.

Similarly, the deposits in the Ethereum Smart contracts have also hit an all-time high as of now. The value of the ETH coins staked in these deposit contracts has reached nearly $ 13 billion.

📈 #Ethereum $ ETH The total value of the deposit contract for ETH 2.0 just reached an ATH of 4,276,578 ETH

View metric: https: //

– Glassnode Alerts (@glassnodealerts) May 6, 2021

There is also ample evidence that US institutional investors recently bought Ethereum. The ETH premium on Coinbase has increased significantly since the beginning of 2021.

Another proof that US (institutional) investors are buying ETH dollars at @ Coinbase. The ETH dollar Coinbase premium has increased significantly since early 2021.

New money flows into the crypto market.

– Ki Young Ju (@ki_young_ju) May 5, 2021

One of the main problems with Ethereum’s high activity in the chain was the gas fee. However, it appears that the gas fee has decreased significantly in the past two weeks, which has eased investor pain and increased network activity. At this time, the daily active addresses on Ethereum are also on the rise.

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Disclaimer of liability

The content presented may contain the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.

About the author

Bhushan is a FinTech enthusiast and has a keen understanding of the financial markets. His interest in economics and finance draws his attention to the emerging markets for blockchain technology and cryptocurrency. He is constantly in a learning process and keeps himself motivated by sharing what he has learned. In his spare time, he reads thriller novels and sometimes explores his culinary skills.

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