On-chain analytics show that the amount of ETH on exchanges is rapidly dropping, which might be a bullish sign
According to IntoTheBlock, nearly $7.5 billion worth of ETH (at the current exchange rate) has left centralized exchanges since January. The on-chain analytics firm reports that nearly 2.56 million ETH have left centralized exchanges in just four months in 2022.
2.56m $ETH left centralized exchanges in just 4 months of 2022.
The reserve balance in exchanges continues to drop dramatically.
— IntoTheBlock (@intotheblock) May 4, 2022
Due to the volatility experienced in April, the price of Ethereum ended the previous month down 17% as it tested lows around $2,716 at April’s close. On-chain analytics show that the amount of ETH on exchanges is rapidly dropping, which might be a bullish sign.
This may appear to indicate that ETH investors are in it for the long term, drawing from historical returns. As a result, the constant migration of coins to cold wallets could signal long-term price swings. This is because whale investors frequently send cryptocurrencies away from exchanges to hold them for a long period.
At the time of publication, Ethereum was trading at $2,923, marginally up in the last 24 hours. After reaching a record high of roughly $4,891 on Nov. 16, 2021, Ethereum remains down 40.18% from this peak.
Ethereum acceptance grows
Acceptance of Ethereum as a payment method is increasing. The owner of a $6.5 million Greenwich estate is willing to accept cryptocurrencies, namely Bitcoin or Ethereum, as payment for the property. The listing is the first of its kind in that upscale Connecticut town, according to the sales agent. Bentley University has become one of the first universities in the United States to accept cryptocurrencies for tuition payments and donations, including Bitcoin, Ethereum and the stablecoin USD Coin.
As previously reported by U.Today, Geoffrey Kendrick, head of crypto research at British banking giant Standard Chartered, believes that the price of Ethereum can still achieve a lofty aim of $35,000 in the long run.
According to Kendrick, the imminent transition to proof-of-stake dubbed the Merge will certainly benefit Ethereum’s price. After a series of delays, the much-anticipated network upgrade is slated to happen later this year, according to reports.
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