Journalist
Posted:
- ETH’s foreign exchange reserve has fallen to an all-time low.
- ETH top whales have removed some of the coins from the exchanges.
The amount of ether [ETH] according to data from Santiment.
Source: Santiment
Since February, the largest supply of altcoins on the exchanges has fallen by 28%. At the time of writing, only 8% of the coin’s total circulating supply is on exchanges.
This implies that only 9,615,238 ETH is held across all exchanges out of the coin’s circulating supply of 120,190,475 ETH.
The whales are up to something
The drop in ETH’s foreign exchange reserve follows significant outflows of coins from whale wallets observed over the past 24 hours.
In a post on in these wallets.
👍If #EthereumWhile the market cap hovers just above $2,170, the largest exchange portfolios continue to move coins to smaller portfolios or delist them entirely. 240K $ETH was collectively removed from these wallets within 24 hours, a 2.99% drop in the number of coins held. https://t.co/Fw7lKcVZan pic.twitter.com/AMFPDL4BXp
— Santiment (@santimentfeed) December 19, 2023
The data provider claimed that these transfers were made to smaller wallets or to personal wallets.
The motives behind this whale move remain unclear, but could range from a shift toward long-term investment strategies to concerns about exchange rate security or broader market uncertainties.
Interestingly, amid the drop in market liquidity on December 19, there was a notable increase in new demand for ETH.
Santiment data shows that 100,000 new ETH addresses were created that day, a 23% increase from the previous day’s 81,000.
It also marked a single-day high in new wallet creation; the highest since June 10.
Source: Santiment
This rise coincided with the coin’s brief decline to $2,140 on the day. Therefore, they could be new entrants trying to ‘buy the dip’ in anticipation of a price rise.
But as indicated by the coin’s Moving Average Convergence/Divergence (MACD) indicator, which signals the beginning of a bear cycle, ETH’s accumulation has slowed since December 11.
Read Ethereum’s [ETH] Price forecast 2023-24
Key momentum indicators have been trending downward since then. At the time of writing, ETH’s Relative Strength Index (RSI) was 52.5, while the Money Flow Index (MFI) was 52.80.
While these indicators remained above their respective neutral lines, indicating some continued coin accumulation, their downward positions indicated a notable increase in coin distribution momentum.
Source: ETH/USDT on TradingView