Ethereum (ETH) on Exchanges at All-Time Low; Bullish?


Ethereum (ETH) on Exchanges at All-Time Low; Bullish?

  u.today 26 August 2024 18:39, UTC

Ethereum (ETH), the second-largest cryptocurrency, has set a crucial record: the share of its supply held on centralized exchanges has never been lower. Typically, analysts treat this as a bullish midterm signal.

Ethereum (ETH) supply shock coming, this metric says

Share of Ethereum (ETH) supply stored on centralized exchanges across the globe reached absolute low in the entire asset’s history. As of late August 2024, only 9.75% of Ethers (ETH) are sitting on CEXes, Glassnode data says.

WE ARE NOT BULLISH ENOUGH!

The percentage of #Ethereum held on centralized exchanges just hit a NEW ALL-TIME LOW!

As this development continues, #ETH supply shock potential is REAL. pic.twitter.com/zw4yl7gUgh

— Leon Waidmann | Onchain Insights (@LeonWaidmann) August 26, 2024

For the first time since Ethereum’s (ETH) public release, less than 1 in 10 coins is deposited on centralized exchanges.

Analyst Leon Waidmann, Onchain Foundation’s Head of Research, is excited by the potential of this process for the dynamics of the ETH price moving forward:

We are not bullish enough (…) As this development continues, Ethereum supply shock potential is real.

The last time the Ethereum (ETH) community was sending Ethers to CEXes was in March 2024, to fix profits amid its current price ATH.

The interest in withdrawing Ethers from exchanges mirrors the apathy of sellers: more and more ETH holders are going to keep their ETH in order to sell it at better prices.

Ethereum (ETH) gas price lost 85% in last year

As of press time, the Ethereum (ETH) price is struggling to stay above $2,810, being down by 1.6% in the last 24 hours. Daily trading volume also declined by 3.65%.

The process of the reduction of the ETH share on CEXes is accompanied by another major trend. Using Ethereum (ETH) has never been cheaper, as gas prices target all-time lows in August 2024.

Ethereum’s (ETH) average gas price dropped to 2.6 Gwei: sending ETH transactions at the normal speed costs roughly $0.28 right now.

A year ago, this metric was above 16 Gwei: Ethereum (ETH) gas dropped thanks to the implementation of network upgrades and reduced on-chain activity on Ethereum’s L1.

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