Last week, $1.8 billion worth of Ethereum was withdrawn from exchanges, marking the largest outflow since December 2022. This suggests that investors are moving their ETH to private wallets for long-term accumulation. The outflows coincided with increased selling pressure as the crypto markets experienced a downward trend. Ethereum has also experienced increased volatility, losing over 50% of its value since December 2024. President Trump's announcement of a U.S. crypto reserve, which would include Ethereum, has added uncertainty to the market. However, the outflows from exchanges signal a reduction in selling pressure and a possible shift towards self-custody and cold storage. Analysts suggest that an ETH recovery rally would require support at the $2,100 level and improved market sentiment. The potential introduction of staking Exchange-traded Funds (ETFs) could be a catalyst for Ethereum's price and further decrease its liquid supply. Ether ETF issuers are expecting regulatory approval for staking in 2025, and the establishment of a crypto task force by the U.S. Securities and Exchange Commission may provide more clarity for the industry. Approval of staked Ether ETFs is seen as more likely with pro-crypto commissioners within the SEC. Overall, the withdrawals from exchanges and the potential for ETF staking are seen as positive signs for Ethereum and the crypto ecosystem.



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