Ethereum balances on crypto exchanges fall to lowest level since 2018

The amount of Ethereum’s native token Ether (ETH) held at crypto exchanges has fallen to its lowest level since September 2018, signaling traders’ intent to hold the tokens in hopes of a price rally in 2022.

Notably, nearly 550,000 ETH — worth around $1.61 billion — have exited centralized trading platforms year-to-date, according to on data provided by Glassnode. The massive outflow has reduced the exchanges’ net Ether balance to 21.72 million ETH, down from its record high of 31.68 million ETH in June 2020.

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Ethereum balances on all exchanges as of March 18, 2022. Source: Glassnode

Biggest weekly ETH outflow since October 2021

Interestingly, over 30% of all ether withdrawals from exchanges observed in 2022 appeared earlier this week, data from IntoTheBlock shows. In detail, over 180,000 ETH exited crypto trading platforms on March 15, bringing the value of the weekly outflow to just over $500 million by March 18.

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Ethereum Net Exchange Streams. Source: IntoTheBlock

Chainalysis data showed similar readings, Revealing that ether tokens may have exited exchanges this week averaging about 120,000 units per day, a bullish signal. Excerpts:

“Assets held on exchanges increase when more market participants are selling than buying and when buyers are storing their assets on exchanges.”

IntoTheBlock offered a similar upside view while citing an October 2021 fractal that saw the Ether price increases by 15% Ten days after the Ethereum network spotted massive ETH withdrawals from centralized crypto exchanges.

Ethereum supply crisis underway

the Ether withdrawal surge from exchanges this week coincided with about 190,000 ETH pulling into Lido’s “stETH liquid stakin” pools, IntoTheBlock noted.

In summary, Lido is a no-custody staking service that allows users to overcome the challenges that come with staking on the site Ethereum 2.0 beacon chain, including the requirement to stake at least 32 ETH or multiples thereof. Furthermore, Lido proposes to solve the capital efficiency issue by issuing stETH, the tokenized version of staking ETH.

The last 30 days showed Ether holders add over 1 million ETH into the Ethereum 2.0 contract. And as the protocol prepares to move fully to Proof-of-Stake (PoS) this summer – in the wake of its “merge” Earlier this week on the Kiln testnet – The probability of more Ether tokens going out of the active supply has increased.

ETH price recovery continues

The bullish sentiment surrounding Ethereum’s move to Proof-of-Stake has prompted Ether to enter a rebound mode this week.

Related: In an interview with Time Magazine, Vitalik Buterin talks about the dangers of crypto

In detail, the price of ETH has increased by more than 17% to almost $3,000 for weeks. Interestingly, the upside retracement has its origins at a technical level, rising trendline support with a recent history of limiting Ether’s bearish prospects, as illustrated in the chart below.

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ETH/USD daily chart. Source: TradingView

Nonetheless, as Cointelegraph previously reported, Ether could reduce its profits due to another technical level, this time a falling trendline resistance, which has also helped limit its upside attempts since January 2022.

Together, these trend lines appear to have formed a continuation pattern called a symmetrical triangle, suggesting that Ether will most likely head in the direction of its previous trend, i.e. down. For now, ETH could pull back from its resistance line towards the triangle support trendline on a pullback.

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