On-chain data shows that the exchange’s Ethereum supply has recently declined sharply.
A large amount of Ethereum left the exchange recently
Data from on-chain analytics firm Santiment shows that exchange ETH supply has dropped to its lowest point in almost a decade. “Exchange Supply” refers to an indicator that measures the total amount of Ethereum currently sitting in all centralized exchange wallets.
Observing the increase in value of this metric means that investors are depositing net assets tokens on these platforms. One of the main reasons traders move to exchanges is for sales-related purposes, and this kind of trend can have a bearish effect on ETH prices.
Meanwhile, a falling indicator suggests that the net value of the asset supply leaves the exchange. Such a trend can be a sign of investors’ accumulation, which naturally proves bullish for the coin.
Now, here is the chart shared by the analytics company.
Looks like the value of the metric has witnessed a plunge in recent days | Source: Santiment on X
As shown in the graph above, the exchange’s Ethereum supply means investors have recently made a large amount of net withdrawals.
Compared to seven weeks ago, the exchange’s ETH is now 16.4% less. This sharp change has raised the indicator’s value to its lowest level since 2015, nearly a decade ago.
It is clear from the chart that the timing of this latest withdrawal coincided with the price rush of cryptocurrency. The same graph also shows data related to the supply of Bitcoin in exchange, and it appears that the metrics still continue to move sideways despite the number one digital asset seeing its own decline.
This could be a sign that whales are making a strong push to buy Ethereum dip compared to Bitcoin. However, a more likely explanation could lie in the rich ecosystem of Defi and staking services hosted by ETH.
Ethereum looks positive from a chain perspective, but the same is not true in technical analysis. As analyst Ali Martinez explains in the X Post, Zoom Out Escharts may contain strict photos of the assets.
The TA pattern that ETH has been trading inside for the last couple of years | Source: @ali_charts on X
As seen on the chart, Ethereum appears to be integrated within parallel channels for some time. Assets have been falling recently, and as analysts have marked on the charts, it is possible that the move to a lower level of the channel is being brewed for the coin.
ETH Price
At the time of writing, Ethereum has fallen by more than 3% in the last seven days, trading at around $1,960.
The price of the coin seems to have been moving sideways recently | Source: ETHUSDT on TradingView
Dall-E, Featured Images from santiment.net, Charts from tradingview.com
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