$500 Million ETH in Seven Days: What’s Going On?

Onchain data shows that half a billion dollars worth of ETH was moved from crypto exchanges this week. According to IntoTheBlock, over $500 million worth of ETH was withdrawn from exchanges this week, indicating that accumulation remains strong among ETH traders.

The same is seen for Bitcoin (BTC); in a March 6 tweet, IntoTheBlock reported that despite the recent market fear, traders have shown conviction in BTC, withdrawing nearly $900 million worth of Bitcoin from exchanges in the past 7 days.

Similarly, CryptoQuant observed in its recent analysis a sharp increase in the amount of ETH held by accumulation addresses, which are those that have only received ETH and never withdrawn. This demonstrates large-scale accumulation activities by institutional investors in the current undervalued zone where MVRV is 1.

MVRV is the ratio of market value to realized value. When MVRV falls below 1, it signals entry into an undervalued zone in the cycle. In previous bull cycles, reaching below 1 resulted in major uptrends.

ETH price action

At the time of writing, ETH was down 2.07% in the last 24 hours to $2208 following an earlier selloff on Thursday as traders reacted to news about a strategic Bitcoin reserve and a “digital asset stockpile” in the U.S.

Cryptocurrencies tumbled on Thursday as traders sold on the notion of the U.S. having no immediate plan to buy Bitcoin, per the executive order, against the backdrop of major weakness in equities.

Several cryptocurrencies were showing signs of recovery at press time, while some, including Ethereum, are still trading in the red.

According to a recent Santiment post, Ethereum sentiment has declined to year-low levels as the asset has underperformed in comparison to other top caps. The silver lining in this, according to Santiment, is that the bearishness projected across social media might be a good sign of a potential turnaround for the ETH price once crypto markets stabilize.

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