Ethereum has recorded its biggest net balance outflow in nearly two years, with 224,410 ETH withdrawn from exchanges between February 8 and 9. Data from Santiment suggests this trend could signal a shift in investor sentiment, as large-scale withdrawals typically indicate reduced selling pressure and long-term confidence in the asset.

Investor Confidence and Supply Shock

Massive ETH outflows suggest that investors are opting to hold rather than sell, reducing the circulating supply available for trading. This trend minimizes short-sell signals, which could support ETH’s long-term valuation. However, despite the bullish signal, Ethereum’s price has yet to reflect a significant recovery, with broader market dynamics — especially Bitcoin’s performance — playing a crucial role in its near-term trajectory.

Key Resistance Levels and Breakout Potential

Crypto analyst Daan Crypto Trades notes that Ethereum is facing resistance at key levels following its recent bounce. While a breakout above these levels could confirm a shift in market structure, ETH remains within a flag formation, preventing a definitive trend reversal for now. Until ETH successfully clears these technical barriers, price action is likely to remain range-bound.

Will Ethereum Gain Momentum?

Despite short-term uncertainty, the significant reduction in exchange-held ETH indicates strong accumulation. If investor interest remains high and Ethereum can break through its current resistance, a stronger rally may be on the horizon.