Ethereum On-chain Data shows that more than 1.2 Million Ethereum have exited exchanges in the last two weeks. This could indicate that the cryptocurrency’s price is likely to rise.
Ethereum Exchange Reserve has experienced a notable decline over the past couple of weeks
In a CryptoQuant blog post, an analyst noted that the ETH currency reserve lost more than 5% in the past fourteen days.
The “all exchanges reserve” is an indicator that measures the total amount of Ethereum present in wallets of all centralized exchanges.
Investors are buying less coins if the value of this currency falls. This trend could be positive for the price ETH because holders typically take their crypto from exchanges to accumulate them.
An increase in reserve means that investors are depositing Ethereum right now. Since holders usually transfer their coins to exchanges for selling purposes, this kind of trend may prove to be bearish for the crypto’s price.
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Here’s a chart showing the evolution of the Ethereum Exchange Reserve over the last few weeks.
The indicator seems to have experienced a sharp decline in value recently. Source: CryptoQuant| Source: CryptoQuant
The graph above shows that the Ethereum exchange reserves have experienced a significant decrease over the past year.
In just over the last couple of weeks, the metric’s value has gone from about 24.7 million ETH to around 23.5 million ETH.
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This is a decrease of around 5% in just 14 days. At the current exchange rate, it amounts to almost 4 billion USD or 1.2million ETH.
The rapid drop in reserve suggests that accumulation is possible in this market.
Exchanges have traditionally been considered the “selling supply” of Ethereum. Because of the demand-supply dynamic, its fall can be very positive for the price long term.
ETH Price
At the time of writing, Ethereum’s price floats around $3.3k, up 4% in the last seven days. In the past month, crypto gained 12%.
The chart below shows how the currency’s price has changed over the course of five days.
The price of Ethereum seems to be falling over the last day. Source: TradingView ETHUSD| Source: ETHUSD on TradingView
Ethereum’s value soared to above $3.4k a few days ago. But, it seems that the cryptocurrency’s price has fallen once more in the last 24 hours.
Unsplash.com's featured image. Charts by TradingView.com. CryptoQuant.com chart.