NEWSLETTER
The data in the chain show that the ethereum Exchange reserve has remained at low levels recently. This is what could mean for the eth price.
ethereum Exchange reserve has been moving recently
As an analyst explains in a fast cryptocant <a target="_blank" href="https://cryptoquant.com/insights/quicktake/67b20841f554423ca5e06dad-ethereum-Exchange-Reserves-at-Lowest-Levels” target=”_blank” rel=”noopener nofollow”>mailThe ethereum Exchange reserve has recently been at its lowest level since 2016. The “exchange reserve” here refers to an indicator in the chain that tracks the total amount of eth that is sitting on the affiliated wallets to all the centralized exchanges.
When the value of this metric increases, it means that investors deposit a net number of tokens to these platforms. As one of the main reasons why the holders are transferred to exchanges is for sale related to the sale, this type of trend can have a bearish impact on the eth price.
On the other hand, the indicator that presents a decrease suggests that the exchange exits are overwhelming the exchange inputs. Such a trend can be a sign that investors are accumulating, which can naturally be optimistic for the asset.
Now, here is a table that shows the trend in the ethereum exchange reserve during the last decade:
<img data-recalc-dims="1" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2025/02/Ethereum-Exchange-reserve-stays-in-2016-lows-bullish-signal.png" alt="Exchange ethereum Reserve” width=”1280″ height=”720″/>
The value of the metric seems to have been following a downward trajectory in recent years | Source: <a target="_blank" href="https://cryptoquant.com/insights/quicktake/67b20841f554423ca5e06dad-ethereum-Exchange-Reserves-at-Lowest-Levels" target="_blank" rel="noopener nofollow">CryptoQuant
As is visible in the previous graph, the ethereum Exchange reserve began to set up an bearish trend in 2021, which accelerated during the 2022 bears market. In this new cycle, the decrease in the metric has continued, although it is remarkably slower than At that time.
However, the fact that currencies have continued to abandon exchanges could be a positive signal, since it means that investors prefer to keep their self -odial wallets. The headlines tend to move to Autocustody when they plan to keep in the long term, since it is the safest method to do so.
More recently, the decrease has completely dragged a stop after the indicator reached the lowest levels since 2016, which implies that the sector may have reached a state of balance. eth has been showing a bassist price action lately, but the flat trajectory means that the holders have not yet panicked into the net sale.
It is possible that the pause in the bearish trend is only a temporary deviation for the exchange reserve, but for now, it seems that the inputs and exits are balancing.
While the ethereum Exchange reserve has recently been in this state, the same has not been true for bitcoin, as another analyst has pointed out in a quicktake <a target="_blank" href="https://cryptoquant.com/insights/quicktake/67b254c368e13c6010dd7f97-bitcoin-demand-remains-high” target=”_blank” rel=”noopener nofollow”>mail.
The trend in the btc Exchange Inflow/Outflow Ratio over the last ten years | Source: <a target="_blank" href="https://cryptoquant.com/insights/quicktake/67b254c368e13c6010dd7f97-bitcoin-demand-remains-high" target="_blank" rel="noopener nofollow">CryptoQuant
From the painting, it is visible that the relationship between the entrances and exchanging outputs of Bitcoins has been under brand 1, which means that these platforms have witnessed the exodus of a net amount of btc recently.
eth price
At the time of writing, ethereum is floating around $ 2,700, 1.5% more in the last seven days.
x/kYc2SuaJ/” alt=”ethereum Price Graph” width=”1486″ height=”889″/>
Looks like the price of the coin has been moving sideways over the last few days | Source: ETHUSDT on TradingView
Outstanding image of Dall-E, Cryptoquant.com, TrainingView.com graphics
