Data provided by a popular analyst firm Santiment shows that holders have reduced the risk of a major sell-off in the future by withdrawing massive amounts of ETH from exchanges.
Read: Galaxy Digital CEO, Mike Novogratz: Ethereum Can Become the Biggest Crypto
Analytics provider Santiment posted a tweet stating that Ethereum balances on several crypto exchanges have declined sharply.
Santiment writes:
“To kick off July, Ethereum holders continued to make history by lowering the percent of $ETH held on exchanges to its lowest ratio since November, 2018. Dropping below 18% for the first time in 31 months lowers the risk of a future major selloff.”
The overall balance of ETH on crypto trading platforms has declined to below 18 percent, the lowest since November 2018.
Santiment believes that by moving ETH off exchanges to wallets, users have reduced the chances of a massive ETH sell-off in the near future.
Santiment Tweets:
?? To kick off July, #Ethereum holders continued to make history by lowering the percent of $ETH held on exchanges to its lowest ratio since November, 2018. Dropping below 18% for the first time in 31 months lowers the risk of a future major selloff. https://t.co/h7WmA7IoEI pic.twitter.com/rfyT9lwBHy
— Santiment (@santimentfeed) July 2, 2021
At the time of this writing, Ethereum is trading at $2,060. Earlier this year, ETH managed to hit an all-time high of $4,361 on May 12, according to data provided by CoinGecko.
Read: For the First Time Ethereum Crossed Bitcoin in Address Activity
ETH started 2021 from $1367 and reached All-Time-High in May. ETH saw an increase of 220 Percent since Jan 2021. ETH also faced decline of 54% since May 12, but the second largest crypto was able to hold its ground and quickly recovered above $2000, which is main physiological support.