Ethereum Balance On Crypto Exchanges At 5-Yr Low; Can ETH Price Crash To $1400?
Ethereum (ETH) balance on the crypto exchanges has reached a new five-year low. ETH withdrawals from exchanges outpaced in 2023 as investors anticipate massive upside movement in ETH price. The move is triggered by an increase in ETH staking, which has surprisingly increased after the Shanghai upgrade on April 12. Will ETH price rise or fall under these conditions?
Ethereum Balance on Exchanges Drops to 16 Million Ether
CryptoQuant data indicates that the total amount of ETH held in the crypto exchanges has dropped to critical levels. ETH on exchanges now stands at almost 16 million, reaching levels not recorded since July 2018. It has declined 50% since the all-time high.
Ethereum reserves on crypto exchanges have decreased since mid-2020 but the rate of decline picked pace in September 2022 as the Ethereum network transitioned to proof-of-stake (PoS) with the Merge upgrade.
In 2023 alone, ETH balance on exchanges fell from 18.5 million to 16 million. The decline will continue as the rate of Ethereum staking rises after the Shanghai upgrade.
Etherscan data shows 22.98 million ETH worth $41 million is currently staked on the Beacon Chain.
Also Read: Binance Suspends Crypto Deposits As Multichain CEO Remains Missing
Will Ethereum Price Fall Below $1700?
Typically, low exchange reserves indicate less selling pressure and bullish momentum. Low supply in the market will cause ETH price to rise.
ETH price is up by small 0.5% in the past 24 hrs, with the price currently trading above the $1800 level. The 24-hour low and high are $1782 and $1817, respectively. The volatility remains lower and trading volumes has declined after the upgrade, bringing stability to ETH price.
Also Read: Ethereum Client Releases Major Upgrade To End PoW Support, ETH Price Jumps
Earlier, as reported by CoinGape Markets, defending the $1700 support is must for ETH bulls. Losing this support will signal a continuation of the correction and price may crash to $1400. From the local top at $2138, price got rejected at trendline resistance of wedge pattern and is currently at a crucial support range of $1740-$1714.
- Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?
- White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
- Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role
- Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms
- Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
