Ethereum balances on crypto exchanges have hit a 2-year low of 12.447 million ETH
Ethereum outflows from crypto exchanges have exceeded 1 million ETH in the last 30 days
The outflow of ETH from exchanges continues despite the slowdown in the price of Ethereum
ETH is still having a hard time breaking the $2,800 resistance level
The amount of Ethereum stored on centralized crypto exchanges has hit a 2-year low of 12,447,941 ETH. This is according to an analysis by the team at Glassnode that also provided the following chart demonstrating the continual drop in Ethereum held on exchanges.
Over 1M Ethereum has Left Exchanges in the last 30 days
From the above chart, it can be observed that Ethereum balances on crypto exchanges experienced a brief uptick in the month of May before the trend reversed and ETH continued to flow out exchanges. The initial uptick can be attributed to last month’s crypto market selloff that saw Ethereum hit a new low at $1,728 on May 23rd. The selloff was attributed to speculation that Tesla had sold its Bitcoin and China reiterating its 2018 ban on BTC mining and crypto trading.
According to data from Viewbase, the outflow of Ethereum in the last 30 days has been to the tune of 1,042,493 ETH as seen in the screenshot below. This, in turn, means that Ethereum investors suppressed the urge to send their ETH to crypto exchanges for selling as was the case with Bitcoin as captured by the same screenshot.
Ethereum Continues to Struggle with the $2,800 Resistance Level
With respect to price action, Ethereum is trading at the $2,600 price area after being rejected at the $2,800 resistance level earlier today. The latter resistance also converges with the 50-day moving average (white) that has been a constant barrier for Ethereum since mid-May as seen in the chart below.
Also from the chart, it can be observed that Ethereum could be headed towards testing the lower $2k levels this weekend based on the reduction in trade volume and the MACD failing to show enough strength to break above the baseline.
Bitcoin is Still Exhibiting Market Weakness
As with all altcoins such as Ethereum, traders and investors are reminded that ETH’s fate in the crypto market is tied to Bitcoin. Right now, BTC is battling to reclaim the $36k support area amidst news of a new crackdown in China of Bitcoin-related social media accounts on Weibo.
Therefore, BTC could experience further losses leading up to the weekly close. Consequently, the entire crypto market including Ethereum will follow BTC if starts to dip again.