Ethereum balance on exchanges plummeted to a record low! It triggered a 33% jump in ETH

On-chain data shows that the current ETH balance held in exchanges has dropped sharply to a record low of 12.6% in the past 30 days, which means that the amount of Ethereum that exchanges can sell has decreased, which may represent a potential bullish signal.

During the just-concluded holiday, Bitcoin strived to hold steady at the $30,000 mark. Although it briefly broke through $31,400 earlier, it quickly fell back and was currently trading at $30,521 at press time.

Ethereum (ETH) continued to fluctuate between $1,860 and $1,930. It was currently trading at $1,897 at press time. There is also no obvious price trend at present.

ETH balances on exchanges hit new lows

However, judging from the on-chain data, it seems to give us a different view.

According to Glassnode data, the current ETH balance held in exchanges has dropped sharply to 12.6% in the past 30 days, setting a new low. Usually, a reduction in exchange supply is seen as a bullish signal because it means that the amount of ETH that can be sold is reduced.

At the same time, the supply of ETH currently locked in staking contracts continues to rise. According to TokenUnlocks data, the net staking amount has grown by 3.63 million ETH since the Shanghai upgrade. The total staking amount has now exceeded 23.3 million ETH, continuing to set new highs.

Bullish signal? Last time this happened, ETH rose 33%.

The last time such a large amount of ETH was withdrawn from the exchange was around November 2022. After a period of volatility, the price of ETH quickly rose by more than 33% in January this year.

Safe-haven withdrawal from ETH?

However, it should be noted that although the sharp increase in withdrawals from exchanges and the continued increase in pledged amounts may indicate that investors want to hold ETH for the long term, these withdrawals may also be due to the series of crackdowns on exchanges launched by the SEC in June. The resulting safe-haven withdrawals do not necessarily mean that selling pressure is declining and prices are about to rise. Investors still need to continue to observe market trends.