Ethereum on Exchanges Falls to a 6-Month Low, But Where Will it Go?
On-chain analytics service Nansen made the announcement on May 8 that the amount of Ethereum held by exchanges has fallen to its lowest level in six months. On the centralized exchange, there are only 26.5 million ETH, which is currently valued at around $49 billion.
The total amount of Ethereum (ETH) traded on exchanges has decreased by nearly 10% since the start of the year. Moreover, with the failure of the FTX exchange at the end of 2022, there was a significant movement of Ethereum from the trading platform.
According to Nansen, Coinbase holds the lion’s share of the Ethereum exchange market, accounting for 31% of the total or 7.91 million ETH. Binance is in second place with 19% of the exchange’s ETH balance, which is equivalent to 4.78 million ETH. Bitfinex is in third place with 8.3%.
Since there are so many options for making a profit within the Ethereum ecosystem, leaving it on an exchange to gather dust is not the best way to spend your time. In addition, most of the ETH that has been removed from the exchange has been sent to the self-custody and staked addresses. On May 8, an analytics service by the name of Glassnode revealed what happened to the 1.55 million ETH that was removed from Beacon Chain.
According to what was mentioned, there was no substantial increase in currency exchange volume after the Shanghai upgrade. As a result, contrary to what was anticipated, there is no increase in the amount of pressure exerted by the seller when a withdrawal is possible. After the initial spike in the number of withdrawal requests, it has been observed that the number of stock exits has decreased and currently remains stable between 300 and 700 daily.
In terms of ETH withdrawals, Kraken is responsible for around 32% of all transactions. This was due to the enforcement action taken by the SEC, which led to the termination of the betting services provided by Kraken. According to Glassnode, Lido has reaped the most benefit from Shapella’s upgrade despite the fact that it currently does not support recalls.
Currently, Lido has a market share of 33.5% of the total, and Coinbase is in second place with 11.5% share as a betting provider. The researchers came to the following conclusions after conducting their investigations: “Overall, the results of the analysis indicate that the Proof-of-Stake mechanism for inbound and outbound validators worked as it should, with Ethereum’s consensus mechanism remaining stable over the period. process.”
Despite the relatively mild selling pressure following Shapella’s launch, ETH’s price has retreated following the success of their bigger sibling. At the time of writing, the price of ETH had fallen to $1,842 after a 1.2% loss for the day. Over the weekend, the asset value was nearing $2,000; however, there is significant resistance at that level. ETH price has fallen 13.4% since hitting an all-time high in 2023 and is currently down 62.2% from its previous peak. In a very short time frame, support can be found a little over $1,800 at the moment.
