- Net Ethereum flows through exchanges increased by more than 6%.
- ETH has remained below the resistance level.
Over the past month, Ethereum [ETH] has experienced a noticeable trend of outflow from exchanges. It indicated that investors were withdrawing their holdings from trading platforms.
Despite the decline in exchange balances, the volume of ETH being staked has continued to grow. ETH has attempted to stabilize its price amid these shifts in investor behavior and network participation.
Ethereum Increases Monthly Outflows
AMBCrypto’s analysis of Ethereum transaction data revealed a significant net outflow from exchanges, with the data showing that over 1 million ETH moved from exchanges in June.
This outflow, worth approximately $3.8 billion, marked a significant change of 6.4% month-over-month, indicating a substantial reduction in the amount of Ethereum held on exchanges.
A closer look at CryptoQuant’s exchange reserve data highlighted the magnitude of this shift. At the beginning of June, the total ETH in exchange reserves was over 17 million.
By the end of the month, this number had dropped to around 16 million ETH. At the time of writing, the reserve was around 16.6 million ETH.
Source: CryptoQuant
This decline in currency reserves usually points to some strategic moves by investors.
This involves an increase in long-term holdings as investors withdraw ETH into secure wallets, or more active participation in the Ethereum staking process.
This is especially true for the ongoing development towards Ethereum 2.0. Both scenarios imply optimistic sentiment among holders.
Total Ethereum stake increases
Analysis of Ethereum staking activity provides insightful trends into holder behavior, especially as exchange balances decline.
According to data from Glassnode, there has been a consistent increase in the total number of deposits, indicating that more holders are choosing to stake their ETH.
This activity is significant because it suggests a shift from trading or holding Ethereum on exchanges to securing it in staking contracts. According to the latest data, the number of deposits has passed 1.5 million.
Source: Glassnode
This trend is further reinforced by data from Dune Analytics which shows that over 33.2 million ETH have been staked. This substantial volume of staked ETH accounts for almost 28% of the total ETH supply.
Overall, the increased staking activity and associated decline in ETH held on exchanges highlights a strategic shift among holders towards long-term investments.
ETH finds resistance
AMBCrypto’s analysis of Ethereum based on a daily timeframe chart showed that there has been a shift in market dynamics. The price recently even dropped below the short moving average (yellow line).
This moving average, which previously acted as support, now acts as a resistance level due to the recent price decline.
This reversal from support to resistance is a common technical pattern that indicates a change in market sentiment, where the price level that once fueled buying interest now acts as a barrier to upward movement.
Source: TradingView
Read Ethereum’s [ETH] Price Prediction 2024-25
At the time of writing, Ethereum was trading at around $3,430, a slight drop of less than 1%.
The immediate resistance defined by the short moving average is currently in the range of $3,500 to $3,600.