Ethereum Bullish Signal: 1.2 Million ETH Exited Exchanges Recently
Ethereum on-chain data shows more than 1.2 million ETH has exited exchanges over the past two weeks, a sign that could be bullish for the price of the crypto.
Ethereum Exchange Reserve Has Observed Significant Decline In The Last Couple Of Weeks
As pointed out by an analyst in a CryptoQuant post, the ETH exchange reserve has lost over 5% in value in just the last fourteen days.
The “all exchanges reserve” is an indicator that measures the total amount of Ethereum present in wallets of all centralized exchanges.
When the value of this metric goes down, it means investors are withdrawing a net amount of coins right now. Such a trend can be bullish for the price of ETH as holders usually take their crypto off exchanges for accumulating them.
On the other hand, an increase in the reserve implies investors are depositing Ethereum at the moment. 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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Now, here is a chart that shows the trend in the Ethereum exchange reserve over the past few weeks:
Looks like the value of the indicator has sharply dropped off recently | Source: CryptoQuant
As you can see in the above graph, the Ethereum exchange reserve has observed significant decline during the period.
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 drop of around 5% in only 14 days, amounting to about 1.2 million ETH, or almost 4 billion in USD at the current exchange rate.
This large drop in the reserve within such a short timespan suggests accumulation may be going on in the market right now.
Exchanges have traditionally been considered the “selling supply” of Ethereum. So, due to demand-supply dynamics, its decline can be quite bullish for the price in the long term.
At the time of writing, Ethereum’s price floats around $3.3k, up 4% in the last seven days. Over the past month, the crypto has gained 12% in value.
The below chart shows the trend in the price of the coin over the last five days.
The price of ETH seems to have plunged down over the past day | Source: ETHUSD on TradingView
A few days back, Ethereum surged up in value, breaking above the $3.4k level. However, in the last twenty-four hours, the price of the crypto looks to have once again come back down.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com