Ethereum Outflow

Definition ∞ Ethereum Outflow describes the movement of Ethereum tokens from centralized exchanges to private wallets or decentralized applications. This action typically indicates a reduced intention to sell the asset immediately. It can reflect investor confidence in Ethereum’s future or increased participation in decentralized finance protocols. These movements affect exchange supply.
Context ∞ Analysts monitor Ethereum outflows closely as a potential indicator of long-term holding sentiment or increased engagement with the Ethereum ecosystem’s decentralized finance and staking opportunities. Significant outflows can suggest a decrease in available supply on exchanges, potentially influencing future price movements. News reports often highlight these trends.