Ethereum on-chain data shows that over 1.2 million ETH has exited the exchange over the past two weeks, a potentially bullish sign for the cryptocurrency’s price.
Ethereum exchange reserve has seen a huge drop in the last 2 weeks
As pointed out by an analyst at CryptoQuant MailThe ETH exchange reserve has lost more than 5% in value in just the last 14 days.
The “All stock exchanges“It is an indicator that measures the total amount of Ethereum that is in the wallets of all central exchanges.
When the value of this metric decreases, it means that investors are withdrawing a net amount of coins at the moment. Such a trend could be bullish for the price of ETH as coin holders usually take cryptocurrencies out of exchanges to accumulate.
On the other hand, the increase in reserves indicates that investors are depositing Ethereum at the moment. Since owners usually move their coins to exchanges for selling purposes, this type of trend could be bearish for the price of the cryptocurrency.
Now, here is a chart showing 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 chart, the Ethereum exchange reserve has noticed a significant decrease during the period.
Over the past couple of weeks, the value of the metric has gone from around 24.7 million ETH to around 23.5 million ETH.
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This represents a drop of around 5% in just 14 days, which is approximately 1.2 million ETH, or approximately $4 billion USD at the current exchange rate.
Such a large decrease in the reserve within such a short period of time indicates the possibility of an accumulation in the market at the moment.
Exchanges have long been considered a “sell supply” of Ethereum. Therefore, due to the dynamics of supply and demand, its decline can be completely rising For the price in the long run.
ETH . price
At the time of writing this report, Ethereum price It is floating around $3.3K, up 4% in the past seven days. Over the past month, the cryptocurrency has gained 12% of its value.
The chart below shows the currency price trend over the past five days.
The price of ETH seems to have plunged down over the past day | Source: ETHUSD on TradingView
A few days ago, the value of Ethereum rose, surpassing the $3.4 thousand level. However, in the past 24 hours, the price of the cryptocurrency appears to have fallen again.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com