- The price of Ethereum is up almost 2% in the last 24 hours.
- However, the market indicators were bearish, indicating a change in trends.
The Binance and Coinbase episode with the US Securities Exchange Commission wreaked havoc in the crypto industry. It caused a decrease in the supply of Bitcoin [BTC] And Ethereum [ETH] on Binance, suggesting that investors were losing confidence in CEXs.
Read Ethereum [ETH] Price prediction 2023-24
Ethereum investor confidence in Binance plummeted
Glassnode’s latest tweet revealed that investors were actively withdrawing their money after the SEC incident ETH and BTC from Binance. According to the tweet, Ethereum’s balance on Binance was around 4.56 million to 4.2 million.
Since the SEC charges, the #Bitcoin And #Ethereum Balance on #Binance has fallen by -48K BTC and -360K ETH respectively.
🟡 BTC balance: 706K BTC to 658K BTC (-48K BTC)
🔵 ETH balance: 4.56 million ETH to 4.2 million ETH (-360K ETH) pic.twitter.com/rOKZpfgJwn— glassnode (@glassnode) June 15, 2023
This indicated that they were losing confidence in the CEX. To keep their holdings safe, investors moved their wealth into self-custody or DEXs. This was evident from Dune’s data.
After a decline, ETH volume on DEX and registered an uptick, according to the chart, ETH DEX volume has increased on multiple projects like Curve [CRV]Uniswap [UNI]and more since June 11.
Source: Dune
Ethereum’s earnings have plummeted
It was interesting to see that ETH generated the highest revenue in the first quarter, driven by high usage and gas rates. According to Messari’s recent tweet, Ethereum’s revenue was $457 million, nearly 2.8 times the combined revenue of all other recommended L1s.
.@Ethereum generated the highest revenue in the first quarter, driven by high usage and gas rates. Sales were $457 million, nearly 2.8x the combined sales of all other featured L1s.@Hedera had the most significant revenue growth, a 489% QoQ increase, driven by the Consensus Service. pic.twitter.com/ybTQJhIq7I
— Messari (@MessariCrypto) June 16, 2023
However, things changed in the second quarter of this year. Token Terminal’s data showed that ETH’s earnings were down. After peaking on May 5, 2023, Ethereum revenues plummeted, which was not good for the blockchain.
Source: Token Terminal
ETH investors had a good day
Although ETH’s earnings fell, the token’s price moved in the opposite direction. According to CoinMarketCap, the price of ETH is up nearly 2% in the past 24 hours. At the time of writing, it was trading at $1,665.31, with a market cap of over $200 billion.
From CryptoQuant, Ethereum’s Relative Strength Index (RSI) was in an oversold position. This may have increased buying pressure and pushed up the price of the token. Ethereum’s exchange rate reserve was also green, suggesting the token was not under selling pressure.
Source: CryptoQuant
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Here’s the catch
Take a look at ETHThe daily chart suggested that the uptrend could continue as market indicators looked bearish. The MACD showed a bullish predominance in the market.
Ethereum’s Chaikin Money Flow (CMF) also registered a downtick. In addition, the Exponential Moving Average (EMA) ribbon also indicated that the bears led the market as the 20-day EMA was below the 55-day EMA.
Source: TradingView
