Crypto Exchanges See Large Ethereum Outflows
As Ethereum climbs toward $2,600, ETH reserves on crypto exchanges keep dropping.
As Ethereum's price heads toward $2,600, ETH balances on crypto exchanges continue to drop. According to new on-chain data from Glassnode, since early April nearly one million ETH have been withdrawn from trading platforms.
On April 6, there were 18.01 million ETH on exchanges. By Wednesday, that number had fallen to 17.12 million ETH. That puts Ethereum balances at exchanges like Binance, OKX, and Kraken back to the lowest level since last November.
Over five years the trend looks even more spectacular: in May 2020, crypto brokers still held 34.3 million ETH. Since then, the reserves have roughly halved. A similar pattern is also visible with Bitcoin, its rival.
Currently, only about 14.2% of all circulating Ether sits on exchanges. ETH users are increasingly choosing self-custody via hardware wallets such as Ledger and Trezor.
Traditionally, a drop in exchange reserves is seen as a bullish signal. At the same time, big investors like Abraxas Capital are adding more ETH. The firm recently bought 242,652 ETH worth $561 million.
On a weekly basis, Ethereum is up 27%. That leaves the No. 2 crypto well ahead of rivals like Bitcoin and XRP.
Since the Pactra upgrade on May 7, which has significantly strengthened Ethereum technically, investor sentiment has been notably positive. The Ethereum Foundation also aims to boost security with a so-called “Trillion Dollar Initiative”.
