$ETH IS BEING WITHDRAWN FROM THE EXCHANGE IN DROVES – WHAT SIGNS FOR ETH PRICE?

Below is a chart from Glassnode showing:

🔵 Blue line: Amount of ETH currently on exchanges.

⚫ Black line: ETH price in USD.

Since the end of 2020, the amount of ETH on exchanges has decreased from over 33 million to only about 16 million. This is the lowest level in many years.

When investors withdraw ETH from exchanges, it usually means they want to hold it long-term, or stake it, with no intention of selling soon.

According to basic supply and demand theory: the less ETH available for sale, the easier it is for the price to rise if demand increases. In fact, previous cycles have shown that strong ETH price increases often coincide with periods of decreasing ETH on exchanges.

So what about the recent period?

Since the beginning of 2024, despite significant fluctuations in ETH price, the amount of ETH on exchanges has continued to decrease steadily. This indicates that investors are not in a hurry to sell and still have faith in the upcoming bullish cycle.

🤔 So, could this be a bullish signal?

In a positive direction: ETH being withdrawn from exchanges is a good sign. It shows that fewer people want to sell → low supply → easier to facilitate price increases.

This is a good on-chain signal. It reflects the confidence of holders in ETH's future. However, for ETH to truly break out, we still need additional factors such as:

- Real capital flowing into the market, especially Altcoins.

- Macroeconomic context: If the world is still busy with trade wars, tariffs, instability... then assets like ETH will not have the opportunity to shine.

However, with the current price still very reasonable, we can journey together in the long run.