In short: The amount of Ethereum held on crypto exchanges has hit an all-time low of 10.1%, according to analytics resource Santiment. This is the lowest figure since ETH began public trading after its launch in 2015. Despite the decrease, the cryptocurrency's price has continued to drop, hitting a new 6-week low of $1,740 on Bitstamp. Some analysts had expected the low exchange supply to be bullish for ETH, but this has not been the case in recent days.
Our quick analysis:
Ethereum holders are proving to be a stingy bunch as the amount of ETH sitting on trading platforms keeps dwindling to record lows. According to a report by analytics resource Santiment, the percentage of ETH on exchanges is now at its lowest point since public trading began in 2015, currently sitting at 10.1%.
At first glance, this should be good news for investors as less ETH on exchanges should translate to lower selling pressure. Unfortunately, recent market movements have been anything but bullish for the world's second-largest cryptocurrency.
Despite touching $2,000 just a week ago, ETH has taken a tumble and is now trading at a 6-week low of $1,740 as of this writing. This downward slide comes in the face of declining exchange ETH supplies, a phenomenon that should have made the asset more attractive to buyers.
It seems that investors are choosing to hoard their ETH at a time when many are anticipating a bullish market for cryptocurrencies. Meanwhile, the market remains unpredictable, with price swings a common occurrence.
While some believe that ETH's current dip is just a temporary blip, others are taking a wait-and-see approach before investing in this highly-volatile market. One thing is for sure, though; as long as investors keep hoarding their coins, the market will remain unpredictable, and prices may continue to suffer.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
Ethereum holders are proving to be a stingy bunch as the amount of ETH sitting on trading platforms keeps dwindling to record lows. According to a report by analytics resource Santiment, the percentage of ETH on exchanges is now at its lowest point since public trading began in 2015, currently sitting at 10.1%.
At first glance, this should be good news for investors as less ETH on exchanges should translate to lower selling pressure. Unfortunately, recent market movements have been anything but bullish for the world's second-largest cryptocurrency.
Despite touching $2,000 just a week ago, ETH has taken a tumble and is now trading at a 6-week low of $1,740 as of this writing. This downward slide comes in the face of declining exchange ETH supplies, a phenomenon that should have made the asset more attractive to buyers.
It seems that investors are choosing to hoard their ETH at a time when many are anticipating a bullish market for cryptocurrencies. Meanwhile, the market remains unpredictable, with price swings a common occurrence.
While some believe that ETH's current dip is just a temporary blip, others are taking a wait-and-see approach before investing in this highly-volatile market. One thing is for sure, though; as long as investors keep hoarding their coins, the market will remain unpredictable, and prices may continue to suffer.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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