Ethereum (ETH) has sparked optimism amongst investors with a recent decline in its exchange supply and a price rebound. This trend suggests a potential shift in market sentiment, with less selling pressure and possible accumulation by holders.
Exchange Exodus: ETH Drained at Record Pace
Data from Glassnode reveals a significant decline in ETH held on exchanges, reaching around 10.19% – the lowest level in eight years. This indicates a mass exodus of ETH from exchanges, potentially signifying a long-term holding strategy by investors. The dominance of outflows in the recent netflow data further supports this notion, with a netflow of -1,481 suggesting more ETH leaving exchanges than entering.
Price Rebound Hints at Weakening Bear Trend
Following a period of decline, ETH’s price has exhibited a positive move, currently trading around $3,540 with an increase of approximately 1.7%. This uptick follows consecutive declines in the previous trading sessions. Additionally, the Relative Strength Index (RSI) analysis suggests a weakening bear trend, with the RSI approaching the neutral line.
Also Read: Ethereum Soars 5% As SEC Ends Investigation: Whale Splashes $20 Million On ETH
What Does This Mean for Investors?
The decrease in ETH exchange supply and the price rebound could be interpreted as bullish signals. With less ETH readily available for selling, potential buying pressure could drive prices upwards. However, the market remains volatile, and investors should conduct their own research before making any investment decisions.
Looking Forward
It will be interesting to see if this trend continues. If ETH continues to be withdrawn from exchanges and the price maintains its upward trajectory, it could be a significant turning point for Ethereum.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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