While activity is slowing down Ethereum priceIn particular, investor sentiment towards centralized exchanges appears to be very strong. Despite the price drop, which saw the price of ETH fall by $3,000, the overall altcoin supply on cryptocurrency exchanges plummeted to its lowest in several years.
Exchange-owned Ethereum hit a new low.
Ethereum They are becoming less prevalent on centralized exchanges at a rate that is difficult to ignore, signaling a significant shift in the way investors position themselves. Market expert and author Arab Chain's CryptoQuant report reveal ETH exchange supply has been steadily declining, reaching its lowest level in years.
Notably, this indicator fell to its lowest level since 2016, indicating a shift toward longer-term holdings and less selling pressure. As more ETH moves from one trading platform to another long term storage Alternatively, the amount of available sell-side liquidity is becoming increasingly scarce due to self-storage.
Arab Chain highlighted that the current state of ETH reflects significant changes in supply behavior across cryptocurrency exchanges, as evidenced by the Exchange Supply Ratio across all platforms. Metrics show: Percentage of ETH held on exchanges There has been a steady decline, which is important for understanding the current supply and demand balance.
According to a chart reading, the exchange supply ratio is currently at a level of 0.137, one of the lowest since 2016. This decline indicates increased ETH outflows from exchanges to external wallets, which suggests a decrease in immediate sell demand.
Historically, such behavior indicating a growing preference for long-term holdings is often seen over periods of time. reaccumulate. This also appears to lead to more stable price movements after periods of volatility.
ETH withdrawals on the Binance platform are very proven
At Binance, the world's largest cryptocurrency exchange, the exchange supply ratio fell to a relatively low level compared to the previous month, at around 0.0325. What this means is that there are noticeable ETH withdrawals. BinanceThis is the wallet of the largest exchange in terms of liquidity.
As a result, the supply of ETH available on the platform for immediate sale on the spot market decreases. Arab Chain expects this dynamic to increase merchant attention and Reduced short-term selling pressure. An interesting aspect of this trend is that withdrawals are increasing despite the increased volatility of the ETH price.
During the study period, Ethereum traded near $2,960, an intermediate level that reflects the relative balance of supply and demand. Reduced supply and price stability on exchanges indicate that there is not much selling pressure in the market. Rather, it is going through a process of redistributing and absorbing liquidity.
Featured image from iStock, chart from Tradingview.com
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