Traders are Withdrawing Ethereum From Crypto Exchanges
According to Glassnode analysts, the volume of Ether on cryptocurrency exchanges has been declining over the past few days. The influx of the cryptocurrency to the trading floors is much lower than its outflow, which creates the conditions for the formation of a shortage of ETH.
At the moment, the second largest cryptocurrency by market cap is trading at around $3,406. The rise in the price of Ether is observed against the backdrop of the activation of the ten largest ETH addresses.
According to a report from the Santiment team, whales have accumulated up to 23.7% of the total Ether supply. They are not going to dump their reserves and prefer to send ETH to offline storage.
A similar trend was observed in the first half of 2017. At that time, whale wallets also mainly accumulated Ether, which contributed to a decrease in its exchange offer. As a result, we saw the famous altcoin run during the hype five years ago.
In a week, investors sent ETH worth up to $5 billion to exchanges. At the same time, the outflow amounted to more than $6 billion. This suggests that about 20% more Ether leaves trading platforms than enters them daily.
