Quick Summary
- More than 1 million ETH were exited through centralized exchanges over the last one month.
- 5.5 percent decrease in the total ETH balance in exchanges.
- Ethereum experienced the biggest single-day amount of whale accumulation on May 12.
- A Golden Cross technical technical pattern signals a possible rise to the level of $3,000.
- The entry of whale wallets resulted in the absorption of 325,000 ETH in a day, a record breaking step.
- On-Chain trends indicate the movement towards long-term holding and against the trading (after the upgrade of Pectra).
- Reserves in exchange fall to new lows
Ethereum reserves on centralized exchanges have decreased by more than 5.5% in the last one month, now totalling approximately 17 million ETH, according to Cryptorank. This huge withdrawal is a positive sign that more investors would prefer holding than selling ETH.
In the last month, over 1 million ETH left the centrally controlled exchanges, as was revealed by Cryptorank, and this signified that users were becoming increasingly interested in holding Ethereum as opposed to selling.
Source: Cryptorank
Binance is Forefront in the Exodus
According to data available on CryptoQuant, more than 300,000 ETH was withdrawn by Binance alone last month. It has lost over 800,000 ETH since January, which it did when the price has dropped (below $1,400 in April) and rallied (above $2,400 in May).
The negative correlation between the declining exchange reserves and increasing prices highlights a bullish supply-demand cycle: scarcer ETH in the exchanges translates to decreasing liquidity, which can have the effect of exploding prices.
May 12a: The Whale Stampede
The record holding single day of ETH accumulation took place on May 12 — 325,000 ETH was swallowed by whales wallets on that particular day. A one-day ETH accumulation, according to CryptoQuant, is the biggest.
The circulating supply is further flattened off as Whale investors relinquish their ETH in favor of long-term storage by sending them to cold wallets. This is a good indicator of the future of Ethereum, more so after Pectra upgrade.
Source: CryptoQuant
Technical Indicators Buyish Trend
On top of the positive fuels, Ethereum charts have also provided a golden cross in terms of moving average or one of the strongest bullish technical indices under which the 50-day moving average has passed over 200-day average. This mostly leads to high bullish levels and currently, we are looking at the possibility of a rally as well as to the price of $3,000.
Final Thoughts
The trends in the ethereum world like the radical change in the behavior of investors, the depletion of exchange capacity and the new lease in the whoales of storing it has triggered a new wave of the bull push. Long term investors look more confident than ever, and in case such tendencies proceed, ETH may be on the verge of the significant break.