- Ethereum net flow from exchanges increased by over 6%.
- ETH has remained below its resistance level.
In the last month, Ethereum [ETH] has witnessed a notable trend of capital outflows from exchanges. This indicates that investors are withdrawing their holdings from trading platforms.
Despite the reduction in exchange balances, the volume of ETH staked has continued to grow. ETH has attempted to stabilize its price in light of these changes in investor behavior and network participation.
Ethereum increases monthly outflow
AMBCrypto’s analysis of Ethereum transaction data revealed a significant net outflow from exchanges. The data showed that over 1 million ETH were withdrawn from trading platforms in June.
This outflow, worth about $3.8 billion, represented a significant 6.4% change from the previous month and indicated a significant reduction in the amount of Ethereum held on exchanges.
A closer look at CryptoQuant’s exchange reserves data highlighted the magnitude of this shift. As of early June, the total amount of ETH held in exchange reserves was over 17 million.
By the end of the month, this amount 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 foreign exchange reserves typically indicates some strategic actions by investors.
This is either an increase in long-term holdings as investors withdraw ETH to secure wallets or a move toward more active participation in the Ethereum staking process.
This is especially true for the ongoing development towards Ethereum 2.0. Both scenarios indicate an optimistic mood among holders.
The total amount of Ethereum staked increases
Analyzing Ethereum’s staking activity provides insightful trends into the behavior of its holders, especially with regard to declining balances on exchanges.
According to data from Glassnode, the total number of deposits has been steadily increasing, indicating that more holders are choosing to stake their ETH.
This activity is significant as it indicates 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 exceeded 1.5 million.
Source: Glassnode
This trend is further reinforced by the fact that data from Dune Analytics shows that over 33.2 million ETH have been staked. This significant volume of staked ETH represents almost 28% of the total ETH supply.
Overall, the increased staking activity and the corresponding decline in ETH held on exchanges underscore a strategic shift by holders towards long-term investments.
ETH encounters resistance
AMBCrypto’s analysis of Ethereum using a daily timeframe chart suggested a shift in market momentum, with the price recently falling below its short moving average (yellow line).
This moving average, which previously acted as support, is now acting 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 supported buying interest now acts as a barrier to upside.
Source: TradingView
Read Ethereum’s [ETH] Price forecast 2024-25
At the time of writing, Ethereum was trading at around $3,430, down slightly by less than 1%.
The immediate resistance, defined by the short moving average, is currently in the $3,500-$3,600 range.