The Decline of Ethereum on Exchanges
Since the FTX crash in 2022, there has been a continuous decrease in the amount of Ethereum held on exchanges. This can be attributed to a growing lack of trust in centralized exchanges and investors’ preference for self-custodying their tokens. As a result, the Ethereum supply on exchanges has now reached its lowest point since its inception.
ETH on Exchanges Reaches Genesis Levels
When the Ethereum network was first introduced in 2015, there was a limited amount of ETH available on exchanges due to its newness. However, over the years, as the digital asset gained popularity and began trading on various exchanges, the balance of ETH on these platforms steadily increased.
But now, there has been a shift in investor behavior, with more people choosing to hold their ETH in private wallets instead of leaving them on exchanges. As a result, only 8.41% of the total circulating supply of ETH is currently available on exchanges.
This decline in ETH on exchanges is significant as it marks the lowest level since Genesis in 2015. On-chain data tracker Santiment highlights this fact and also mentions that whale transactions have reached a six-month high.
The Impact of Holder Accumulation
The move away from exchanges coincides with a rapid increase in Ethereum’s price, suggesting that holder accumulation has played a crucial role in its recovery. If exchange balances continue to decrease, indicating less willingness to sell ETH and reduced selling pressure, the value of Ethereum could continue to rise.
Price Targets for Ethereum Bulls
With the $1,700 resistance level cleared by Ethereum bulls, their focus has shifted to higher price points. The next significant resistance lies at $1,850, which was tested on Tuesday but rejected by the bulls. Clearing this level is crucial for establishing a stronger bull trend.
The $1,920 level is the next major obstacle for ETH price. Bears are expected to put up a strong defense at this level to prevent a full-blown bull rally.
Finally, the $2,000 mark holds great significance for Ethereum and reclaiming it from the bears could signal an end to the downward trend. Reaching and maintaining support at this level will be a key milestone for ETH bulls.
Hot Take: The Shift in Ethereum Holdings
The decline in Ethereum holdings on exchanges is indicative of a broader trend where investors are choosing to take control of their assets by self-custodying them in private wallets. This shift away from centralized exchanges reflects a growing distrust in these platforms and highlights the importance of decentralization in the crypto space.
By
By
By
By
By