The amount of Ethereum’s native token Ethereum (ETH) held in crypto exchanges has fallen to the lowest level since September 2018, and traders intend to hold tokens in anticipation of a price increase in 2022. Is shown.
In particular, according to the data provided by Glassnode, about 550,000 ETH (equivalent to about $ 1.61 billion) is leaving the centralized trading platform. Due to the large outflow, the exchange’s net Ethereum balance fell from a record high of 31.68 million ETH in June 2020 to 21.72 million ETH.
Largest weekly ETH spill since October 2021
Interestingly, more than 30% of all Ether withdrawals witnessed in 2022 appeared earlier this week, data from IntoTheBlock. show.. Specifically, over 180,000 ETHs left the crypto trading platform on March 15, with weekly outflows of just over $ 500 million as of March 18.
Chain analysis data showed similar measurements, revealing that Ether tokens may have left the exchange at an average of approximately 120,000 units / day this week. This is a bullish signal. excerpt:
“If more market participants want to sell rather than buy, and if the buyer chooses to store the assets on the exchange, the assets held on the exchange will increase.”
IntoTheBlock quoted a similar turnaround, citing the October 2021 fractal, where Ethereum prices rose 15% 10 days after the Ethereum network detected a major ETH withdrawal from centralized crypto exchange. Showed the outlook.
Ethereum supply crunch in progress
According to IntoTheBlock, this week’s increase in Ethereum withdrawals coincided with the move of approximately 190,000 ETH to Lido’s “stETH Liquid Stakin” pool.
In summary, Lido is an unmanaged staking service that enables users to overcome the challenges associated with staking the Ethereum 2.0 Beacon chain. This includes staking requirements of at least 32 ETH or multiples thereof. In addition, Lido proposes to solve the capital efficiency problem by issuing stETH, a tokenized version of the bet ETH.
For the last 30 days Ether holder to add more than 1 million ETH For Ethereum 2.0 contract. And as the protocol prepares to fully switch to Proof of Stake (PoS) in the summer, it’s likely that more Ether tokens will lose their active supply after being “merged” on the Kiln Testnet earlier this week. became. ..
Lol. No one told Anon that the liquidity would be squeezed by the newly cast ether within a few months. Newly cast ether will not be distributed between Marge (June) and Shanghai (December). I send them a text, but I don’t even know their number. I got it? Poor Anon.
— Superphiz.eth (@superphiz) March 16, 2022
ETH price rebound continues
The bulls surrounding the switch to Ethereum’s Proof of Stake have put Ethereum into rebound mode this week.
Related: Vitalik Buterin talks about the dangers of cryptography in an interview with Time Magazine
In detail, the price of ETH has risen by more than 17% weekly to nearly $ 3,000. Interestingly, as shown in the chart below, upward retracement begins at the tech level, with increasing support for trendlines with a history that limits the recent bearish outlook for Ether.
Nonetheless, as Cointelegraph previously reported, Ether was able to curb profits with another level of technology. This time, the resistance of the trend line has decreased, which has helped to curb the attempt to rise after January 2022.
Together, these trend lines appear to form a continuation pattern called a symmetric triangle. This indicates that Ether is likely to be in the direction of the previous trend, that is, down. For now, ETH may fall back towards the triangular support trend line by pulling back from its resistance.
The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and transaction movements carry risks. When making a decision, you need to do your own research.
