$ETH
The data on the chain shows that the supply of Ethereum on exchanges has recently experienced a sharp decline, which could be bullish for the price of ETH.
A large amount of Ethereum has been withdrawn from exchanges recently.
According to data from blockchain analytics company "Santiment", the supply of Ethereum on trading platforms has dropped to its lowest level in nearly a decade. The "supply of Ethereum on trading platforms" refers to an indicator that measures the total amount of Ethereum currently held in wallets of all centralized trading platforms.
When this metric rises, it means that investors are depositing a net number of the asset's tokens on these platforms. One of the main reasons traders move to exchanges is for selling purposes, and this type of trend may have a bearish impact on the price of Ethereum.
Related reading: The "hot supply" of Bitcoin has decreased by 50% - what does this mean?
On the other hand, a decline in the indicator suggests that a net amount of the asset supply is leaving the exchanges. This trend may indicate accumulation by investors, which could naturally be positive for the currency.
And now, here is the chart shared by the analytics company showing the trend in the supply of Ethereum on exchanges over the past year:
