Ethereum Supply On Exchanges Reaches New Low Of 14%
November 30 2021 - 2:00PM
NEWSBTC
On-chain data shows that the percentage of Ethereum supply present
on exchanges has set new lows of around 14%. Ethereum Supply On
Exchanges Continues To Go Down As pointed out by an analyst in a
CryptoQuant post, the ETH supply present on exchanges has been
going down since a while now. It has now hit new lows of about 14%.
The “percentage supply on exchanges” is an indicator that shows the
share of the total Ethereum supply stored in wallets of all
exchanges. Usually, this supply present on exchanges is said to be
the selling supply of ETH, and so if the indicator’s value goes up,
it means there is a higher number of coins in the available sell
supply. Due to supply-demand dynamics of the market, this kind of
trend can prove to be bearish for the cryptocurrency’s price. On
the other hand, if the metric’s value moves down, it implies the
available supply of Ethereum has reduced. Prolonged such trend can
create a supply shock in the market, which can turn out to be
bullish for the coin’s price. Related Reading | Exchanges See
Bitcoin Outflows For 7th Straight Day As BTC Price Begins Recovery
Now, here is a chart that shows the trend in the percentage of
total ETH supply on exchanges in the past year: Looks like the
indicator's value has been gradually going down | Source:
CryptoQuant As you can see in the above graph, the percent ETH
supply on exchanges has shown a steady downtrend during the entire
year so far. Currently, the value of the indicator sits around 14%,
a new low. At the start of the year, the metric’s value was about
21% so that in the past year 7% of ETH supply has been taken off
exchanges. Related Reading | Ethereum Scarcity: After London
Fork, ETH’s Supply Change Drops To Almost Zero Also, back in May,
when the price of Ethereum was at similar levels as now, the
metric’s value was around 18%, a sizeable difference. Because of
this the analyst believes that the current supply shock isn’t fully
reflected in the price yet. And that it won’t be long until a
difference is seen. ETH Price At the time of writing, Ethereum’s
price floats around $4.6k, up 10% in the last seven days. Over the
past month, the crypto has gained 5% in value. The below chart
shows the trend in the price of the coin over the last five days.
ETH's price looks to be recovering from the crash | Source: ETHUSD
on TradingView A few days back, Ethereum and the wider market had a
crash due to fud from the latest COVID variant. However, ETH looks
to have already recovered from it. Featured image from
Unsplash.com, charts from TradingView.com, CryptoQuant.com
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