Ether supply on exchanges drops to 10.6%, the lowest level in years.
Over $3 billion worth of Ether has been withdrawn since May 23 ETF approval.
Potential for Ether to reach new all-time highs by the end of June due to ETF launches.
Ether supply is at its lowest level in years, with only 10.6% on centralized exchanges. Over $3 billion worth of Ether has been removed since the US ETF approval, indicating a supply squeeze. The decrease in Ether on exchanges, equivalent to $3.02 billion, suggests fewer coins are available for sale as investors move their coins to self-custody.
Exchange balances for both #Bitcoin and #Ethereum are at their lowest levels in years!Whales continue to accumulate. #BTC on exchanges is down to 11.6% and #ETH is at 10.6%!Supply squeeze incoming. Get ready for the next big move. pic.twitter.com/u4j13DZBJk
— Leon Waidmann | On-Chain Insights (@LeonWaidmann) June 2, 2024
Sharp Decline in Exchange Reserves
Over 797,000 Ether, or $3.02 billion, was taken out of exchanges between May 23 and June 2, according to statistics from CryptoQuant. The sharp decline in exchange reserves indicates that investors may be moving their coins to self-custody for purposes other than immediate sales.
Glassnode data shows that the proportion of circulating Ether supply held on exchanges has fallen to a record low of just 10.6%. This pattern points to a major shift in investor behavior toward long-term holding strategies, which would ease the market’s immediate sell pressure.
Possibility of a New Record High
By the end of June, Ether-based ETFs are expected to go live, as stated by Bloomberg’s ETF analyst, Eric Balchunas. Many experts think that Ether might climb even higher than its all-time high of around $4,870 recorded in November 2021.
DeFi reporter crypto analyst Michael Nadeau noted that Ether might benefit even more from this demand surge compared to Bitcoin due to its lower “structural sell pressure.” Unlike Bitcoin miners, who often need to sell BTC to cover mining costs, Ethereum validators do not face the same level of operating expenses.
Currently, Ether is trading at $3,818, up 0.72% over the past 24 hours and approximately 23% below its all-time high. The market remains watchful as the implications of ETF approvals and the subsequent Ether exodus unfold.
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The post Ethereum Withdrawals From Exchanges Total $3B Amid ETF Approvals appeared first on Crypto News Land.
