Yesterday, approximately 110,000 Ethereum (ETH) tokens, equivalent to $181 million, were withdrawn from cryptocurrency exchanges, according to an X post shared by the market intelligence platform Santiment earlier today. This marked the highest daily outflow of ETH from exchanges since 21 August of this year.
Santiment also revealed that the amount of ETH being held in wallets outside of exchange platforms has reached an all-time high (ATH) of 115.88 million ETH. Additionally, the supply of ETH available on exchanges is now at its lowest point in approximately 5.5 years.
😮 #Ethereum saw about ~110K $ETH ($181M) move off of exchanges Wednesday, the largest outflow day since August 21st. The amount of non-exchange Ethereum now sits at an #AllTimeHigh 115.88M $ETH, while its exchange supply is at its lowest in ~5.5 years. https://t.co/PUOWGt0KS0 pic.twitter.com/u54pp6LZij
— Santiment (@santimentfeed) October 5, 2023
This news could be one of the reasons why ETH’s price managed to record a small 0.20% increase over the past 24 hours of trading. According to CoinMarketCap, this left ETH trading at $1,643.21 at press time, which was just above its daily low price of $1,642.62.
Over the past week, ETH also experienced a modest increase in its price, with a gain of about 1.95%. However, within the last 24 hours, the trading volume of the altcoin has declined by over 13%, bringing it down to a level of $4,547,102,054.
Daily chart for ETH/USDT (Source: TradingView)
From a technical standpoint, ETH’s price was rejected by the $1,690 price point over the past few days. Consequently, the altcoin was at risk of retesting the next support level at $1,580. Thereafter, continued sell pressure may force ETH below this key level to potentially reach as low as $1,480 through the course of the following week.
On the other hand, if ETH is able to close a daily candle above $1,690 in the next 48 hours, then the bearish thesis could be invalidated. In this scenario, ETH’s price could rise to as high as the $1,790 barrier.
Investors and traders will, however, want to take note of the fact that the daily moving average convergence/divergence MACD line was closing in on the daily MACD signal line. If these two lines cross, then it may suggest a continuation in ETH’s negative trend. Subsequently, sellers may have enough strength and influence on ETH’s chart to force its price down to the aforementioned $1,480 mark.
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