Ethereum Exchange Balances Decline Sharply, Impact on ETH Price

Ethereum is currently hovering around $2,200 and the price has experienced quiet volatility over the past seven days. New data from Santiment has revealed the current sentiment among Ethereum whale addresses as total supply on exchanges recently hit a new low. According to the on-chain analytics platform, more than 240,000 ETH left 10 of the largest ETH exchange wallets in the last 24 hours.

As a result, the cumulative number of ETH deposited on cryptocurrency exchanges decreased from 8.03 million ETH to 7.79 million ETH in one day, one of the largest ever. With the price of ETH currently hovering around $2,200, this means a loss of over $528 million in ETH value on exchange balances.

Ethereum exchange supply plummets

Ethereum It is currently down 1.74% in the last 24 hours. Test the breakthrough again The level of approximately $2,200 appears to have become a support level. However, the sharp decline in Ethereum balances on exchanges is a very positive sign for ETH. As less ETH becomes available on exchanges, the supply also decreases.

ETH whales have been on a buying spree since the beginning of the month, with many expecting a prolonged bull market at the dawn of the new year. Source of data Into the Block Over the past 30 days, exchange outflows have increased by 98.52%. alone last weekThe whale purchased over 100,000 ETH worth $230 million.

This sentiment has continued into this week, with 240,000 ETH leaving exchanges in 24 hours, reducing coins held on exchanges by 2.99%. According to Santiment, only 8.07% of Ethereum’s total supply is currently on exchanges, which is an all-time low.

👍As #EthereumThe market value of is just above $2,170, with the largest exchange wallets continuing to move their coins to smaller wallets or off exchanges altogether. 240K $ETH In just 24 hours, there was a total transfer from these wallets, reducing their coin holdings by 2.99%. https://t.co/Fw7lKcVZan pic.twitter.com/AMFPDL4BXp

— Santiment (@santimentfeed) December 19, 2023

ETH failed to break out of the $2,250 price level, falling to $2,120 in the late hours of December 19. As of this writing, ETH is currently trading at $2,208. The price action suggests the cryptocurrency has yet to gain strong traction among retail investors and a retest is underway.

According to cryptocurrency analyst Ali Martinez, Ethereum is bouncing around a breakout area in an ascending triangle. If this consolidation continues, we could see a price range between $2,150 and $1,900 before reaching the $3,500 target.

#Ethereum It is currently retesting the breakout area in the ascending triangle, hinting at preparations for further upside.

The price range between $2,150 and $1,900 can be an ideal area to accumulate transfers. #ETH I set a higher goal of $3,500. pic.twitter.com/6lGZT0ZKgv

— Ali (@ali_charts) December 20, 2023

Ethereum has risen 82.67% this year and the outlook for 2024 is bright. still optimistic. According to cryptocurrency analyst Altcoin Daily, ETH’s path to $10,000 could be I think it’s clear nowpending Ethereum Spot ETF This is the main catalyst for price increases.

ETH bulls continue to maintain control | Source: ETHUSD on Tradingview.com

Featured image from Cointribune, chart from Tradingview.com

Disclaimer: This article is provided for educational purposes only. This does not represent NewsBTC’s opinion on whether to buy, sell or hold any investment, and of course investing carries risks. We recommend that you do your own research before making any investment decisions. Your use of the information provided on this website is entirely at your own risk.