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The current data suggests an imminent explosive bull run that could propel Ether to even greater heights.
Reports from crypto analysts and experts have revealed that ETH reserves on centralized exchanges have plunged by 27% within just 48 hours. Ethereum isn’t looking to back down anytime soon this year as the digital coin continues to build upon its impressive performance this year.
Data from Glassnode have revealed that, up to just 7% of Ether’s circulating supply is currently held on crypto exchanges, signaling the lowest that ETH reserves have dropped since July 2018. Glassnode again showed that the number of Ethereum based addresses holding 0.01+ coins just crossed its previous all-time high of 10,997,003 to a new all-time high of 10,997,708.
According to CryptoQuant, a website that provides On-chain data and analysis to institutional investors, there’s just 8.1 million ETH currently sitting in the reserves of centralized exchanges. Crypto expert Alex Saunders highlighted the rate at which ETH reserves were plunging, revealing that Eth reserves on exchange platforms on January 14 went from 11 million to 10 million in just over 24 hours, signaling a 10% drop. He added that the buying pressure could get worse within the coming days as the decline in ETH reserves is now above 20% “Exchanges will run out of ETH in 10 days at the current rate,” he stated.
Reports from other data providers have also revealed that, balances on centralized exchanges have seen a 42.5% drop since May 2020 when it reached an all-time high of 14.1 million.
Experts have attributed the latest urge to get a stake in Ether to its recent surge in the crypto market. The cryptocurrency is up by over 500% this year and crypto experts have predicted a new all-time high in the coming days as the current buying pressure is an indication that the demand for the second largest cryptocurrency is at an all time high.
According to Saunders, the current data suggests an imminent explosive bull run that could propel Ether to even greater heights.
“We all know what happened when demand outstripped supply of $BTC. It quadrupled in 90 days,” he stated. Crypto intelligence firm Into The Block, has revealed that Ether is currently showing numerous bullish signals, and the latest developments includes “a bid-to-ask volume imbalance of almost 9%.”
Reports have shown that 2 million Ether that have been moved from exchanges were channeled to Gnosis, a firm that builds market mechanisms for decentralized platforms. Another 600,000 Ether that have been recently moved has been linked to an internal transfer between Bitfinex cold wallets of which one is reportedly not to be recognized CryptoQuant.