Ethereum Exchange Balances Drop Drastically, What This Means for ETH Price

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Ethereum is currently hovering around $2,200, with the price experiencing 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, over 240,000 ETH left 10 of the largest ETH exchange wallets in the last 24 hours.

As a result, the cumulative amount of ETH deposited on crypto exchanges dropped from 8.03 million ETH to 7.79 million ETH in one day, one of the largest it has ever seen. With the current price of ETH hovering around $2,200, this represents a drop of over $528 million worth of ETH in currency balances.

Ethereum Exchange’s supply is plummeting

Ethereum is currently down 1.74% in the last 24 hours and is currently retest his outbreak level around $2,200, which appears to have turned into support. However, the drastic drop in Ethereum balances on exchanges is a very bullish sign for ETH. As there is less ETH available on exchanges, the supply is reduced.

ETH whales have been on a buying spree since the beginning of the month as many look forward to an extended bull run at the start of the new year. Dates of InTheBlok achieved a 98.52% increase in foreign exchange market outflow volume in the past 30 days. Just last week alonewhales bought over 100,000 ETH worth $230 million.

This sentiment continued this week, with 240,000 ETH leaving exchanges within 24 hours, leading to a 2.99% drop in the number of coins held on exchanges. According to Santiment, only 8.07% of Ethereum’s total supply is currently on exchanges, the lowest ever.

ETH failed to reach the $2,250 price level and fell to $2,120 in the late hours of December 19. At the time of writing, ETH is now trading at $2,208. Price action suggests that the crypto is still not gaining strong traction among retail investors and that another test is underway.

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

Ethereum is up 82.67% this year and 2024 prospects remains bullish. According to crypto analyst Altcoin Daily, ETH is on its way to $10,000 seems certain at this pointin treatment Ethereum Spot ETFs an important catalyst for this price growth.

Ethereum price chart from Tradingview.com

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

Featured image from Cointribune, chart from Tradingview.com

Disclaimer: The article is for educational purposes only. It does not represent NewsBTC’s views on buying, selling or holding investments and of course investing involves risks. You are advised to conduct your own research before making any investment decisions. Use the information on this website entirely at your own risk.



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