- Ethereum has fallen by over 5% in the past couple of days.
- Ethereum exchange supply has fallen to its lowest in almost five years.
Ethereum [ETH] got off to a great start this year, working to regain the positions it had lost over the previous few months. Recent price movements, however, have stopped the increasing trend that started back in January.
Most investors have responded this way despite the recent swings between highs and lows.
Read Ethereum (ETH) Price Prediction 2023-24
Ethereum continues its downtrend
In the previous three days, Ethereum (ETH) has decreased by around 6%, according to a daily timeframe analysis.
Its price was roughly $1,560 as of the time of writing. Its price movement has fallen below the short Moving Average (yellow line) due to its over 4% value decline on 3 March.
The long Moving Average (blue line), which also served as support, was recognized at about $1,513 and $1,448. Also, the resistance was discovered in the $1,600 to $1,700 price range.
In addition, the recent decrease has turned Ethereum’s (ETH) trend from bull to bear. In the daily timeframe, the Relative Strength Index (RSI) line has dipped just barely below the neutral region.
Exchange Supply falls to five years low
A recent Santiment report showed that the percentage of the overall Ethereum (ETH) supply on exchanges has decreased due to the price decline.
According to the indicator, the exchange supply reached its lowest level in nearly five years. It made up almost 11% of the entire supply as of the time of writing, down from over 11% in December and almost 15% in November.
It showed that fewer people were transferring their holdings to exchanges and instead wanted to keep them in their wallets.
Comparing another similar metric with the exchange supply metric revealed a distinct pattern of token movement on and off exchanges.
According to CryptoQuant’s Exchange Netflow statistic, there have been more Ethereum (ETH) outflows in recent days than inflows.
It is safe to infer that the fall in price spurred withdrawal rather than a sell-off, given the amount of outflow’s dominance on the exchange Netflow indicator and the decline in exchange supply.
How much are 1,10,100 ETHs worth today
Volume indicates low activities
Furthermore, the volume indicator also provided information on how Ethereum behaved over the previous weeks. According to what could be seen on the volume measure, there has been a low volume recently.
The low volume that has been noticed contrasts what was initially possible regarding the activity the metric had seen. Combining all the metrics suggests a panic sell-off of ETH will not happen soon. Instead, most investors are demonstrating a desire to hold and weather the fall.