$9 Billion In Ethereum Exited Exchanges In Last 3 Days As ETH Drops To $4.2k

Keshav Verma

3 years ago

3 mins read

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$9 billion in Ethereum was withdrawn from exchanges within the past three days, suggesting that whales might be accumulating.

A Massive 2.2M ETH Exited Exchanges In The Last Three Days Alone

As pointed out by a CryptoQuant post, on-chain data shows around $9 billion in Ethereum was taken off exchanges in the past few days.

The indicator of relevance here is the “exchange reserve,” which measures the total amount of ETH present in exchange wallets.

When this metric’s value goes down, it means investors are withdrawing their Ethereum from exchanges. Such a trend may be a sign of accumulation, and could be bullish in the long-term.

On the other hand, when the indicator moves up, it implies holders are moving their coins to exchanges either for withdrawing to fiat or for purchasing altcoins. This situation can end up being bearish for the crypto.

Now, here is a chart that highlights the trend in the value of the Ethereum exchange reserve over the past year:

Looks like the indicator has been dropping off for a while | Source: CryptoQuant

As the above graph shows, the Ethereum exchange reserves showed a very sharp decline over the past three days.

During this period, about 2.2 million ETH (more than $9 billion at the current rate) was taken off exchange wallets.

This is one of the largest quantities of Ethereum that was withdrawn in such a short amount of time. This could be a sign of accumulation from whales, or it could turn out to be a result of internal wallets transfer on an exchange.

But if it’s indeed because of accumulation from big players like institutional investors, then it could be quite bullish for ETH.

Also, the chart shows that the exchange reserves have been on the decline for a while now. As the exchange reserves effectively represent the available supply of Ethereum for purchase, such a constant decrease may be leading to a supply shock.

Due to supply-demand dynamics, such a prolonged trend can prove to be bullish for the cryptocurrency in the long term.

Ethereum Price

At the time of writing, ETH’s price floats around $4.2k, down 13% in the last seven days. Over the past thirty days, the crypto has gained 11% in value.

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

Looks like ETH's price has declined in the past couple of days | Source: ETHUSD on TradingView

After rising above the $4.7k level again a few days ago, the coin has again dropped back down since, touching as low as $4.1k.

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

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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