Ethereum

bullish

Wednesday

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Ethereum exchange balances have reached a new low, indicating a potential supply shortage.</li> 
 <li>Ethereum whales continue to accumulate despite recent market dips.</li> 
</ul>  
<p>Ethereum’s [ETH] exchange balances have reached a new low, which strengthens the possibility of a supply shock for the largest alternative cryptocurrency. This has happened despite the recent market dip, as Ethereum whales continue to accumulate, according to on-chain analyst Leon Waidmann. </p> 
<p>The Ethereum balance percentage has fallen to 10% as of August 10. This equates to approximately 12 million ETH on exchanges, a decreasing supply trend that could theoretically pave the way for a rally in ETH prices. </p> 
<h2 id="decreasing-supply-on-centralized-exchanges">Decreasing Supply on Centralized Exchanges</h2> 
<p>This signifies that the available supply of Ethereum on centralized exchanges has dipped to an all-time low. It further highlights that investors are transferring their Ethereum holdings away from centralized exchanges for accumulation or self-custody. In most scenarios, this is seen as a bullish sign for Ethereum. </p> 
<p>During the recovery from the price lows of $2.1k on August 5, the number of active Ethereum addresses increased by over 130K, growing from 440K to 571K by August 10. Over the same time frame, there was also a surge of over 60K in new addresses, highlighting robust growth in the Ethereum network. </p> 
<h2 id="eth-price-action-and-network-growth">ETH Price Action and Network Growth</h2> 
<p>However, the weekly demand for Ethereum from US investors was inconsistent, particularly in relation to Ethereum ETF flows. The products saw positive flows of $48.7 million and $98 million on Monday and Tuesday, scooping the dip. But from Wednesday to Friday, ETFs experienced a negative streak, amounting to $42 million in outflows. </p> 
<p>Regarding price action, Ethereum’s overall recovery has nearly reached 30%, rising from $2.1K to over $2.6K at the time of writing. It has regained the crucial $2.5K level, but the previous range-lows at $2.9K have not yet been retested or reclaimed. Consequently, the range lows are a key level to monitor if the recovery continues into the new week. However, if the recovery gains were to retract, bulls would have to attempt to defend the $2.5k level.</p>

Ethereum Whales’ Moves: Is it Wise to Follow as Exchange Balances Plunge?

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CoinEagle.com

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