11,370 ETH Withdrawal Stuns Coinbase: Bullish Signal?

According to blockchain intelligence platform Arkham, a whale pulled almost $40 million worth of ETH from Coinbase.

In a recent tweet, Arkham stated that a fresh address, which it simply refers to as "0x98E," withdrew 11,370 ETH from Coinbase Prime at an average price of $3,811 per coin. The move quickly put the whale in profit, with gains of over $400,000 within an hour.

The recent move adds to speculation of rising whale demand for the world's second-largest cryptocurrency. "Have whales started coming for ETH?" Arkham asked in its tweet.

Bullish signal?

Large withdrawals from centralized exchanges such as Coinbase are frequently interpreted as bullish signals for several reasons. First, when whales transfer ETH off of exchanges, it typically signals an intent to hold rather than sell.  

Second, it could also represent institutional interest. Coinbase Prime caters to institutional clients, implying that major investors may be making strategic moves into Ethereum.

Third, it can indicate market confidence. The size of the purchase, as well as the fact that it came from a newly created address, might reflect strong conviction in Ethereum.

Ethereum OI dominance skyrockets

According to Glassnode, Ethereum's open interest dominance has subsequently increased to above 40%, its highest level since April 2023. Only 5% of days have shown a higher reading. This represents a clear shift in speculative focus, with capital shifting from BTC to ETH on the margin.

Ethereum was recently trading at $3836, with traders eying a breakout to $4,000. According to Ali, a crypto analyst, the real breakout for Ethereum begins above $4,100.