According to Santiment, Ethereum experienced a net outflow of approximately 169,770 coins from exchanges, marking the largest single-day withdrawal in over four months. This trend mirrors the activity observed on June 5, when 223,800 ETH left exchanges, preceding a price recovery. Analysts note that reduced supply on exchanges can favor buyers if price levels remain stable.
Despite the outflow, institutional demand remains weak. US spot Ethereum ETFs recorded net outflows on 14 out of 16 trading days in October, totaling $1.18 billion in withdrawals. By October 22, total net assets for these funds dropped to $14.57 billion, the lowest level since August 21. Additionally, the Coinbase Premium Index reached -0.134, indicating lower prices on Coinbase compared to Binance.
Market analysts are currently divided on the asset's trajectory. Ethereum is trading at $2,377.29, with Santiment identifying $2,400 as a key pivot point. A recovery above $2,500 could signal a bottom, while a drop below $2,330 would weaken the current outlook. Other analysts, such as Michaël van de Poppe, suggest potential entry points below $2,300 for a future reversal.
The broader market environment shows signs of tightening liquidity, as stablecoin reserves on major exchanges have been declining since April. While some analysts point to technical indicators like an inverse head and shoulders pattern as a potential bullish signal, the lack of fresh capital and sustained ETF outflows continue to weigh on Ethereum's immediate price momentum.
