Data compiled by Chinese journalist Colin Wu shows a sharp drop over the weekend in Ethereum reserves held on exchange wallets.
The trend has continued downwards over the course of this week, leading some to ask, what is going on with the second largest cryptocurrency?
Source: Twitter.com
What is signaled by dwindling Ethereum exchange reserves?
Analysis by Wu Blockchain of Ethereum exchange reserves shows the figure has reached its lowest point in 2021, at 19.8 million ETH.
“The reserves of all exchanges of ETH have continued to decrease and have been reduced to the lowest point in the past year, which is 19.8272 million.“
At the same time, Ethereum is beginning to show signs of recovery from the recent FUD-driven crash, with the price moving back above the 200-day moving average and the RSI trending upwards.
However, the situation remains somewhat precarious until a break above $2.9k resistance confirms a reversal of fortunes.
Source: ETHUSD on TradingView.com
Declining exchange
Źródło: https://cryptoslate.com/ethereum-exchange-flow-is-falling-what-does-this-mean/
