Ethereum Balance On Crypto Exchanges At 5-Yr Low
According to CryptoQuant data, the total amount of ETH held in crypto exchanges has reached critical levels. ETH on exchanges is now nearly 16 million, reaching levels not seen since July 2018. It has dropped by half since its all-time high.
Ethereum reserves on crypto exchanges have been declining since mid-2020, but the rate of decline accelerated in September 2022 when the Ethereum network switched to proof-of-stake (PoS) with the Merge upgrade.
ETH balance on exchanges fell from 18.5 million to 16 million in 2023 alone. The drop will continue as the rate of Ethereum staking increases following the Shanghai upgrade.
According to Etherscan, the Beacon Chain currently has 22.98 million ETH worth $41 million staked in it. Typically, low exchange reserves indicate less selling pressure and bullish momentum. Low supply in the market will cause ETH price to rise.
(With inputs from Shikha Singh)
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