Ethereum (ETH) Balance on Cryptocurrency Exchanges Falls to its Lowest Level in 5 Years

2023-05-26 12:52:38

According to data shared by various sources, the total balance of Ethereum (ETH) on cryptocurrency exchanges has fallen to a 5-year low. The total number of Ethereum (ETH) transactions accelerated considerably as investors continued to anticipate an upward movement in the price of the cryptocurrency. The move is believed to have been triggered by a large increase in Ethereum (ETH) stakingwhich has increased rapidly since the introduction of the Shapella update.

Currently, it is a matter of conjecture whether the price of Ethereum (ETH) will go up or down under current conditions. According to data provided by CryptoQuant, the total amount of Ethereum (ETH) is expected to have fallen to critical levels. The total amount of ETH on different exchanges now sits at almost $16 million, and such levels have not been reached since 2018. At the same time, Ethereum is down almost 50% from its all-time high.

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The total number of Ethereum reserves on different cryptocurrency exchanges has been declining since 2020. However, reserves began to decline rapidly not long following the Ethereum network transitioned to a proof-of-stake model following the «Merge». Similarly, only in 2023, the total balance of Ethereum on cryptocurrency exchanges has decreased from 18.5 million to almost 16 million.

Currently, several analysts believe that reserves will continue to decline as Ethereum’s staking rate increases. According to the data provided by Etherscan, $41 million worth of ETH tokens have been staked on the Beacon Chain.

WILL THE PRICE OF ETHEREUM (ETH) GO UP OR DOWN?

At the time of writing this text, Ethereum (ETH) is up regarding 1.46% in the last 24 hours and the rise has pushed the price of negotiation per case $1,813. Similarly, the total market capitalization of the token currently sits at $217 billion.

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Lower bookings are generally believed to indicate less selling pressure, coupled with bullish momentum. Similarly, a lower offer in the market would eventually set the stage for the trading price to rise. The current situation around Ethereum suggests that overall volatility is on the lower side and overall stability might not be too far off.

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