The amount of Ethereum stored on centralized crypto exchanges reached a 2-year low of 12,447,941 ETH. Reaching the data, the Glassnode team also shared the chart below, which shows the continuous decline in Ethereum held on exchanges.
In the chart above, it can be seen that Ethereum balances on crypto exchanges spiked briefly in May before the trend reversed and ETH continued to flow through the exchanges. The initial spike can be attributed to last month’s crypto market sell-off, when Ethereum hit a new low of $1,728 on May 23. The sale was attributed to speculation that Tesla sold off its Bitcoin and that China reiterated its 2018 ban on BTC mining and crypto trading.
According to data from Viewbase, Ethereum output in the last 30 days was 1,042,493 ETH as seen in the screenshot below. This means that as with Bitcoin, Ethereum investors are suppressing the urge to send their ETH to crypto exchanges for sale.
Regarding the price action, Ethereum is trading in the $2,600 price area after being rejected at the $2,800 resistance level earlier today. The second resistance is also converging with the 50-day moving average (white), which has been a constant hurdle for Ethereum since mid-May, as seen in the chart below.
It can also be seen from the chart that Ethereum may be headed to test the lower $2,000s this weekend as the trading volume is down and the MACD failed to show enough strength to break above the baseline.
As with all altcoins, traders and investors are reminded that the fate of ETH in the crypto market depends on Bitcoin. Currently, BTC is struggling to reclaim the $36,000 support area amid the effects of a new crackdown on Bitcoin-related social media accounts on Weibo in China.
Therefore, BTC could suffer more losses until the weekly close. As a result, if it starts falling again, the entire crypto market, including Ethereum, will follow BTC.