The number of Ethereum coins on the exchanges has dropped to an all-time low. The market may not be going through its best at the moment, but these are bullish reports for Ethereum. After all, you cannot deny that in theory this can only have a positive impact on the price.
The less Ethers are available for sale on the exchanges, the greater the chance of price increases.
Not even ten percent
Less than ten percent of all Ethers currently in circulation are at the exchanges. According to Santiment, an on-chain analytics company, this is also due to the fact that more and more people are choosing to keep their crypto in their own wallet.
But it is especially interesting to see the number of Ethers on the exchanges falling to an all-time low at a time when the market is not extremely bullish. On that note, it seems that convinced hodlers are currently accumulating, awaiting perhaps another bull run.
Of course, the question always remains whether that new bull run will come. But perhaps it can happen after Bitcoin’s halving in April 2024. Usually that attracts a lot of attention and you see that around that time hype arises again around Bitcoin and the rest of the market.
Transaction costs to normal level
While the number of Ethereum on the exchanges drops to an all-time low, the transaction costs on the blockchain have also fallen somewhat. At the beginning of May, these were still at the highest point of 2023 with an average of 14 dollars a piece.
Somehow it is a strange idea that the transaction costs on Ethereum are falling, while more and more people are taking their Ethers off the exchanges. You would say that the transaction costs must then increase, because more people use the blockchain.
Of course, that does not apply to people who simply move Ethers to their own wallet to hold them there. In terms of price, it is currently mainly sideways action for Ethereum.
Over the past seven days, there is still a plus of 2.97 percent on the signs, but a small decrease of 0.95 percent for the last 24 hours. The market still seems to be struggling to choose direction.
