Ethereum has seen plummeting exchange withdrawals in recent times. Exchange withdrawals are a metric that is used to sometimes map out investors’ sentiment towards a cryptocurrency. With Ethereum exchange withdrawals reaching one-year lows, it brings to light some facts about the digital asset and where it may be headed. We’ll explore some of that in this article.
Exchange Withdrawals Plummet
Data from Glassnode shows that ethereal exchange withdrawals have been on the decline. This metric had held up through multiple bull rallies and going against the grain as investors chose to move their ETH holdings out of exchanges. It signaled a high accumulation pattern among investors that showed that sentiment remained firmly in the positive as holders refused to sell.
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However, this has now turned as more investors are opting to leave their assets on exchanges. This could mean one of two things. One would be that sentiment has now turned from buy to sell. Investors are no longer moving their holdings off exchanges to hold for the long-term, meaning that they may plan to sell their Ethereum sooner rather than later.
Since the digital asset has just come out of an impressive rally, investors may start taking profit if the asset continues to correct downwards.
Ethereum exchange withdrawals hit one-year low | Source: Glassnode
At the same time, investors may be expecting the digital asset to rally once again, keeping their holdings on exchanges to make for an easier sell when this does happen….