Ethereum has recently experienced a notable transformation, with over £750 million worth of ETH withdrawn from major exchanges in just a week.
This trend suggests that many investors are opting for long-term holding rather than selling their assets. CoinMarketCap reports that Ethereum’s daily trading volume has surged by more than 80%, indicating a heightened interest in the market.
According to data from CryptoQuant, Ethereum’s reserves on exchanges have significantly decreased, dropping from £42 billion to around £38.9 billion. This reduction in available tokens could lead to lower liquidity, which might stabilize or even push prices higher if demand for buying remains strong. With fewer tokens readily available, any increase in buying activity could have a more pronounced effect on Ethereum’s price.
Despite these developments, Ethereum’s price momentum has been somewhat sluggish, especially compared to its competitor, Solana, which has seen impressive gains.
Recently, Ethereum holders have reached a two-month peak in profit-taking, with some choosing to cash out after previous gains. This behavior has influenced recent price fluctuations as investors respond to the current market landscape.
In the midst of these changes, Ethereum co-founder Vitalik Buterin has unveiled “The Purge,” a proposed network upgrade designed to streamline data storage and improve scalability.
