• Ethereum has dropped by over 5% in the past few days, with its exchange supply reaching its lowest level in five years.
• The recent price movement has changed Ethereum’s trend from bull to bear, making the Relative Strength Index (RSI) dip just below the neutral region.
• Exchange Netflow and Santiment indicators show that fewer people are transferring their holdings to exchanges and instead want to keep them in their wallets.
Ethereum Price Drops
Ethereum has fallen by over 5% in the past couple of days, dropping its exchange supply to its lowest level in almost five years. Despite the recent swings between highs and lows, most investors have responded this way due to a daily timeframe analysis showing Ethereum’s (ETH) price falling below the short Moving Average (yellow line). Consequently, Ethereum’s trend was changed from bull to bear as the Relative Strength Index (RSI) line dipped just below the neutral region.
Exchange Supply at Lowest Level
A recent Santiment report showed that percentage of overall Ethereum (ETH) supply on exchanges had decreased due to price decline. As of now it makes up nearly 11% of entire supply which is significantly lower than what it was back in December or November. Furthermore, CryptoQuant’s Exchange Netflow statistic also revealed more Ethereum (ETH) outflows than inflows indicating withdrawal rather than sell-off amidst decreasing prices.
The volume indicator suggests low activity with regards to Ethereum’s behavior over previous weeks, further confirming a decrease in ETH transactions and transfers between users and exchanges respectively.
Impact on ETH Price
The above factors have collectively caused a decrease in ETH value leading many investors to respond negatively despite the current market situation. In addition, these indicators provide insight into investors’ sentiment towards ETH as they continue holding on to it while avoiding any trades or transfers on exchanges for fear of further losses.
Price Prediction 2023-24
It is hard to determine whether this downtrend will continue for longer period or not however some experts believe that by 2023-24 we may see a major upturn with ETH hitting $10k mark which could be very beneficial for current holders who are looking forward for long term gains from their investments .
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