Ethereum exchange balance fell by 5% in two weeks

by in Cryptocurrency News

Ethereum

Over the past two weeks, the volume of ether on centralized crypto exchanges has fallen by about 5%. This conclusion was made by CryptoQuant analysts who studied the activity of traders.

The outflow of digital currency from trading floors eases the pressure on the asset from sellers. As a result, the value of the coin starts to rise due to its low supply.

Accordingly, if investors, on the contrary, prefer to increase their reserves on exchanges, then they are preparing to sell the cryptocurrency.

An increase in the exchange balance of a digital currency is a bearish signal, the researchers note.

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Since mid-March, traders have withdrawn 1.2 million ether from the trading floors. Thus, the altcoin exchange balance decreased in two weeks from 24.7 million to 23.5 million ETH. Investors have reduced their holdings in cryptocurrencies by a total amount of up to $4 billion.

The altcoin is currently trading at $3506. Over the week, its capitalization grew by 10.25% to $421.527 billion.

ViewBase platform data confirm the cumulative trend. Over the past 24 hours, another 8,024 ethers worth $28.086 million left the trading floors.

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Thus, the volume of cryptocurrency placed on exchanges decreased to 10.7% of its market supply.