Key Points
- The percentage of ETH supply on exchanges has hit an eight-year low.
- Ethereum’s price has shown signs of recovery after a recent decline.
Ethereum’s [ETH] price and the amount of ETH on exchanges have both seen a decrease recently. This trend is in line with its Netflow, which has predominantly seen outflows in recent days.
ETH Supply on Exchanges
The balance of Ethereum on exchanges has been on a downward trend for several weeks, becoming more noticeable towards the end of the last month. Glassnode’s chart analysis indicates that it recently fell to about 10.19%. This is the lowest supply on exchanges in approximately eight years.
The chart suggests that this is the first time since 2016 that the supply has fallen to this level. It implies that addresses that held ETH on exchanges have now withdrawn their holdings. The recent decrease in supply is a positive indicator for ETH as it suggests reduced selling pressure and potential accumulation by holders.
Netflow Analysis
The dominance of outflows in the Netflow over the last few days is consistent with the decrease in the exchange balance. The current Netflow is -1,481, indicating that more Ethereum has left exchanges than has been deposited. This aligns with the reduced amount of ETH left on all exchanges.
Ethereum’s Price Trend
At the time of writing, Ethereum was trading at around $3,540, reflecting an increase of approximately 1.7%. The daily time frame shows an improvement from the previous trading session, where its price fell to $3,400 after a less than 1% decline. This drop followed another decline in the session prior to that.
Furthermore, the analysis of Ethereum’s Relative Strength Index (RSI) showed a positive shift. The chart suggests that its RSI is now nearing the neutral line, indicating a weakening bear trend.
