Ethereum holders keep ETH on exchanges.
Glassnode Alerts, in a tweet on Monday, reveals that weekly Ethereum outflows from exchanges have tapped 14-month lows of only about 2,396.131.
“Ethereum ETH Number of Exchange Withdrawals (7d MA) just reached a 14-month low of 2,396.131,” tweeted the analytics firm.
The reason for the low withdrawals is not certain. However, it is worth noting that low withdrawals or high supply on exchanges usually indicate the holders’ desire to sell. It could be that holders plan to sell for profit taking if they expect a price surge in the short term or that they expect more downside and are preparing to cut their losses.
? #Ethereum $ETH Number of Exchange Withdrawals (7d MA) just reached a 14-month low of 2,396.131
View metric:https://t.co/hqrR4jylVe pic.twitter.com/IFI0Qf5Rt7
— glassnode alerts (@glassnodealerts) July 11, 2022
It is worth noting that, as reported by The Crypto Basic, there has been massive ETH flow to exchanges following recent upward price movements. According to the report, holders moved 220k ETH to exchanges, the highest inflow since August 2021.
Meanwhile, just a week before, The Crypto Basic also reported that whales had been aggressively accumulating the asset, a key indicator that prices may be expected to surge in the short term. Notably, the asset rose by over 12% following this accumulation, reaching above the $1,200 price point.
It is worth noting that there is a lot of buzz in the Ethereum community as the long-awaited “merge” edges closer. In the last week, the network reached two critical milestones as it looks to migrate to the proof-of-stake Beacon chain with the execution of the Gray Glacier upgrade. In addition, the merge has made its way to the Sepolia testnet. Consequently, it is only one testnet away from making it to the mainnet.
Ethereum supporters expect the network migration to solve scalability concerns that have plagued the DeFi king.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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