- ETH exchange balance hits new low, signaling upcoming supply crisis.
- ETH could target the previous low if improving market sentiment persists.
Ethereum (ETH) exchange balances hit a new low, reinforcing the supply shock for the world’s largest altcoin. And yet, ETH whales have on ramp Accumulation has increased despite the recent decline, according to on-chain analyst Leon Waidmann.
“Despite the drop, whales continue to accumulate #Ethereum! #ETH exchange balance just hit a new low”
Source: Gassnode
Ethereum’s balance percentage dropped to 10% as of August 10. This translates to about 12 million ETH on exchanges, a downward supply trend that would theoretically set the tone for an ETH price rally.
This means that the supply of ETH available on centralized exchanges has dropped to historically low levels. This further highlighted that investors were moving their ETH holdings off CEXs to hoard or hold them themselves.
In most cases, this can be considered a bullish signal for ETH.
ETH network effects have increased
Meanwhile, during the rebound from the $2.1k price low on August 5, ETH active addresses jumped by over 130,000, from 440,000 to 571,000 on August 10.
During the same period, new addresses also increased by more than 60,000, highlighting strong growth in the ETH network.
Source: IntoTheBlock
However, the weekly ETH request US investors have had mixed feelings, particularly based on ETH ETF flows. Last week, the products saw positive flows of $48.7 million and $98 million on Monday and Tuesday. They picked up the decline.
However, ETFs saw a negative streak from Wednesday to Friday, totaling $42 million in outflows.
ETH Price Evolution
Source: ETH/USDT, TradingView
On the price charts, ETH’s overall recovery has reached nearly 30%, from $2.1k to over $2.6k at press time. It has reclaimed the crucial $2.5k level, but the previous range lows at $2.9k have yet to be retested or reclaimed.
As a result, the range lows were a key level to watch if the rally extended into the new week. However, any retracement of the rally gains would force Bulls are trying to defend the $2,500 level.
