Ethereum Exchange Reserve lost 475,000. Is the red moon of June a time to buy?
The drop in Ethereum prices last week appears to have opened up an opportunity for rapid accumulation among investors. This happens because data shows that there is actually a significant amount of cryptocurrency being moved out of wallets on centralized exchanges. Historically, moves like this mean investors are buying rather than selling, suggesting that investors are actually taking advantage of June’s red moon to fill their pockets.
The numbers indicate that Ethereum investors are choosing to buy.
Recent data from on-chain data aggregator CryptoQuant shows that Ethereum investors are shifting into accumulation mode during the month of June. This comes as cryptocurrencies take off this month, with hundreds of thousands of ETH moving from central exchanges to personal wallets.
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Data shows that Ethereum started June with 3.87 million ETH. However, just one week into the new month, more than 475,000 ETH has been withdrawn from central exchange wallets. This movement was not only felt on one cryptocurrency exchange, but a noticeable decline was also seen on major exchanges.
Top losers included Binance, Bitfinex, OKX, and Gemini Exchange, all of which recorded major outflows during this period. The move comes as the price of Ethereum has fallen below the $2,000 support line, suggesting investors view this price as a low level to enter the cryptocurrency.
Buy ETH on the red moon
June has historically been a red month for the price of Ethereum, so it could be argued that investors are taking advantage of this opportunity to invest in the cryptocurrency. According to data from the CryptoQuant website, in its 10 years on the market, the ETH price has only closed in the green a total of three times in June.
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Other years have ended in June with digital assets showing varying degrees of losses. This brings Ethereum’s average monthly return to -7.59%, second only to September’s average of -10.2%. The median return in June was -8.64%, and the average return in September was -12.7%.
This means that June was the second worst month for Ethereum price. In line with historical performance, the price of ETH has already fallen more than 16% at the time of writing, suggesting that this could lead to another red close for the digital asset.
Featured image by Dall.E, chart by TradingView.com
