Bullish: Ethereum balance on exchanges drop to 2-year low

TL;DR Breakdown:

• Ethereum balances on exchanges have declined to a 2-year low of 15.3 million ETH.
• Both small and large ETH addresses have been accumulating and moving coins off exchanges.

Led by altcoins, the cryptocurrency market has returned to a $2 trillion valuation after the mid-April crash. 

This recovery is probably spurred by the new wave of accumulation seen with major coins, including Ethereum (ETH). On-chain data from Glassnode confirm Ethereum investors have been increasingly accumulating and raising their holdings. In addition to that, more coins have been moved off cryptocurrency exchanges.

The outflows are significant to the extent that the Ethereum balance on exchanges has kept declining since the past month.

Ethereum balance reaches 2-year low

According to Glassnode, the total Ethereum balance on exchanges has dropped to 15,302,112.346 ETH, which is the lowest level last seen since two years ago. This level only accounts for about 13 percent of all Ether (i.e., 117,128,549 ETH per CoinMarketCap) in circulation at the moment.

The decrease in Ethereum balance on exchanges coincides with the growing value of ETH outflows, which is seen as a bullish indicator that investors are HODLing. It’s also worth noting that some coins are also being transferred to decentralized finance protocols. 

Who is buying ETH

Both small and deep-pocketed ETH addresses have been increasing their positions lately, which suggests that retail and large investors are involved in the current accumulation phase. 

New Ethereum addresses (7d MA) recently reached a month high of 3,804.679, per Glassnode. Also, there are now 1,296,263 addresses holding at least 1 ETH. The increase in the number of addresses with 1+ ETH has been matching the growing price of the cryptocurrency. 

Addresses with 10+ and 32+ coins have also reached a 4-month high (273,302) and a 1-month high of (107,923). At press time, ETH was trading at $3,224 – a 1.09 percent gain over the last 24 hours.