Ethereum Supply on Exchanges Is Alarming! Lowest Level Since 2016! What Does This Mean for ETH Price?

The largest altcoin, Ethereum (ETH), broke its 2021 ATH and set a new record with the rise it experienced in August. However, ETH, which could not escape the downward trend it experienced afterwards, could not recover and dropped below $4,000 with its latest ￰0￱ ETH is performing poorly in the short term, institutional demand continues to ￰1￱ this point, the amount of Ethereum held on centralized cryptocurrency exchanges has fallen to its lowest level since 2016 due to the increase in institutional ￰2￱ exodus of ETH from exchanges accelerated in mid-July and has since fallen 20% due to the aggressive accumulation of digital asset ￰3￱ of Thursday, it had fallen to 14.8 million ETH, according to Glassnode data.

CryptoQuant’s Ethereum exchange supply ratio (exchange reserves divided by total supply) is also at 0.14, the lowest level since July ￰4￱ suggests that selling pressure in the market has decreased ￰5￱ Does It Mean for Ethereum? A decrease in exchange supply is typically a sign that the asset is being transferred to cold storage, staking, or DeFi for higher ￰6￱ is interpreted as a signal that investors are moving ETH to cold storage wallets for long-term holding, and that the Ethereum price will rise in the future. Conversely, an increase in stock market balances is generally a sign that investors are preparing to sell. *This is not investment ￰7￱ Reading: Ethereum Supply on Exchanges Is Alarming!

Lowest Level Since 2016! What Does This Mean for ETH Price?