In recent years, Ethereum’s exchange withdrawals have been falling. Exchange withdrawals are a metric that is used to sometimes map out investors’ sentiment towards a cryptocurrency. It is important to know some things about Ethereum and its future. We’ll explore some of that in this article.
Plummeting Exchange Withdrawals
Glassnode data shows that the number of ethereal currency withdrawals has been declining. This metric was stable through many bull rallies. However, it went against the grain because investors decided to take their ETH out of exchanges. This metric indicated a strong accumulation pattern by investors, which showed that sentiment was firmly positive and holders refused to move their ETH holdings out of exchanges.
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This trend is changing as investors increasingly choose to sell their assets and put them on exchanges. It could be one of two possible outcomes. This could mean that sentiment has changed from buy to sale. Investors no longer want to move their Ethereum holdings from exchanges for long-term hold, so they might be looking to sell Ethereum earlier than expected.
Investors may begin to take profit now that the digital asset just experienced an incredible rally. If the asset continues to decline, it could be a sign investors are starting taking profits.
Source: Glassnode| Source: Glassnode
Investors might be waiting for digital assets to rise again. If this happens, they may keep their investments on exchanges so that it is easier to sell. Investors are ready to sell in both instances, as more ETH is on the exchanges.
Investors could be selling their stock on the market, marking the end of the bull-cycle. Prices will continue to fall once the supply exceeds the demand due to these sales.
Bitcoinist reported that Ethereum was experiencing high liquidations due to the falling price. Within 24 hours, more than $31 million worth of futures contracts had been liquidated. As the total number of futures has risen by half, these liquidations continue.
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Over $22 Million was liquidated within 12 hours. This is more than twice the amount in a 24-hour period. This number hit as high as $51 million in the early hours of Tuesday and promises to continue as ethereum’s price continues to stagger.
The price for ETH rose above $4,000 once more, but the bears will not give up as the digital asset tries again to establish its feet above that price.
Source: ETHUSD on TradingView.com| Source: ETHUSD on TradingView.com
Featured Image from Wccftech. Chart by TradingView.com