• Ethereum (ETH) has decreased by around 6% in the past three days, with its price at roughly $1,560 as of time of writing.
• The percentage of the overall Ethereum (ETH) supply on exchanges has decreased due to the price decline and is now at its lowest level in nearly five years.
• Exchange Netflow statistic revealed more Ethereum (ETH) outflows than inflows in recent days, indicating that withdrawal activity rather than a sell-off was driving the decrease.
Ethereum Price Decreases
Ethereum (ETH) has decreased by around 6% in the past three days, with its price at roughly $1,560 as of time of writing. Its price movement has fallen below the short Moving Average (yellow line), and resistance was discovered in the $1,600 to $1,700 price range. The Relative Strength Index (RSI) line has dipped just barely below the neutral region turning Ethereum’s trend from bull to bear. Additionally, volume indicators showed low activities.
Exchange Supply Falls
A Santiment report showed that the percentage of overall Ethereum (ETH) supply on exchanges reached its lowest level in nearly five years – making up almost 11% of total supply as of writing. This indicated that fewer people are transferring their holdings to exchanges and instead keeping them in their wallets. Furthermore, CryptoQuant’s Exchange Netflow statistic revealed more Ethereum (ETH) outflows than inflows in recent days indicating withdrawal activity rather than a sell-off was driving the decrease.
Response from Investors
Despite recent swings between highs and lows most investors have responded positively to these movements demonstrating confidence for recovery from recent losses sustained over previous months.
Longterm predictions for ETH remain optimistic with analysts expecting prices to increase significantly by 2023-24 if market conditions remain stable or improve further over time with further development and adoption trends becoming increasingly apparent as digital asset investments become more popular and accepted worldwide..
In conclusion it appears likely that despite current downward trend ETH prices should pick up again soon given current market conditions and active development within this sector showing promise for increased growth potentials ahead which will likely be reflected soon in increasing prices once again over coming weeks or months ahead when combined with investor confidence remaining strong throughout this current downturn period..