As activity declines, ethereum priceinvestor sentiment, especially on centralized exchanges, seems to be significantly stronger. Despite the pullback that caused ETH to lose the $3,000 price mark, the overall supply of altcoins on crypto exchanges has decreased significantly, reaching its lowest level in years.
Exchange-owned Ethereum hits new lows
Ethereum At centralized exchanges, this trend is fading at a rate that cannot be ignored, indicating a major change in the position of investors. CryptoQuant report by market expert and author Arab Chain. reveal The supply of ETH exchanges has been steadily decreasing and has reached its lowest level in years.
Specifically, this indicator has fallen to its lowest level since 2016, indicating a shift towards long-term holding and less selling pressure. More ETH from trading platforms long term storage Or in the case of self-custody, the amount of sell-side liquidity available continues to get tighter and tighter.
Arab Chain emphasized that the current state of ETH reflects a major shift in supply behavior across crypto exchanges, as shown by exchange supply ratios across all platforms. The metrics are Percentage of ETH held on exchanges has been steadily decreasing, which is important for understanding the current supply and demand equilibrium.
According to chart readings, the exchange supply ratio is currently at a level of 0.137, one of its lowest levels since 2016. This decline indicates an increase in ETH outflows from exchanges to external wallets, suggesting a decline in demand for immediate sales.
Historically, this behavior, indicating an increased preference for long-term holdings, has often occurred during the following times: re-accumulation. It also manifests itself in leading to more stable price fluctuations after a period of fluctuation.
ETH withdrawals are clearly certified on the Binance platform
At Binance, the world’s largest cryptocurrency exchange, the exchange supply ratio has fallen to approximately 0.0325, a relatively low level compared to the previous month. What this means is that there will be significant ETH withdrawals. Binancewallet is the largest exchange in terms of liquidity.
As a result, the supply of ETH available for immediate sale in the spot market on the platform will be reduced. Arab Chain said the move was due to increased caution among traders. Decrease in short-term selling pressure. An interesting aspect of this trend is that withdrawals are increasing even as the price of ETH faces increased volatility.
During the research period, Ethereum traded around $2,960, a mid-range level that reflects the relative balance between supply and demand. Reduced supply and stable prices on exchanges indicate that there is not as much selling pressure on the market. Rather, it is undergoing a process of repositioning and absorbing liquidity.
Featured image from iStock, chart from Tradingview.com
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