1.2 million ETH recently exited exchanges

Ethereum on-chain data shows that more than 1.2 million ETH have left the exchanges in the past two weeks, a sign that could be bullish for the price of the crypto.

Ethereum Exchange Reserve has seen a significant drop in recent weeks

As noted by an analyst in a CryptoQuant afterthe ETH exchange reserve has lost more than 5% in value in the past fourteen days.

The “reserve for all exchanges” is an indicator that measures the total amount of Ethereum present in the portfolios of all centralized exchanges.

When the value of this metric falls, it means that investors are withdrawing a net amount of coins at the moment. Such a trend could be bullish for the price of ETH as holders usually take their crypto from exchanges to collect them.

On the other hand, an increase in reserve implies that investors are currently depositing Ethereum. Since holders usually transfer their coins to exchanges for selling purposes, this kind of trend could turn out to be bearish for the price of the crypto.

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Here is a chart showing the trend in the Ethereum exchange reserve over the past few weeks:

It seems that the value of the indicator has fallen sharply lately | Source: CryptoQuant

As you can see in the chart above, the Ethereum exchange reserve has fallen significantly over the period.

In the past few weeks, the value of the stat has surged from about 24.7 million ETH to about 23.5 million ETH.

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This is down about 5% in just 14 days, which equates to about 1.2 million ETH, or nearly 4 billion in USD at the current exchange rate.

This large fall in the reserve in such a short span of time suggests that there may be accumulation in the market at this point.

Exchanges are traditionally considered to be Ethereum’s “sale offering”. Due to the dynamics of supply and demand, its decline can be quite bullish for the price in the long run.

ETH price

At the time of writing, the price of Ethereum is hovering around $3.3k, up 4% over the past seven days. Over the past month, the crypto has gained 12% in value.

The chart below shows the trend in the price of the coin over the past five days.

The price of ETH seems to have fallen in the past day | Source: ETHUSD on TradingView

A few days ago, Ethereum rose in value and broke above the $3.4k level. However, in the past twenty-four hours, the price of the crypto seems to have fallen again.

Featured image from Unsplash.com, Charts from TradingView.com, CryptoQuant.com

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