It is always worthwhile to keep an eye on exchange balances for popular cryptocurrencies. Ethereum is hitting some interesting values in that regard. While it may not confirm the uptrend’s longevity, it remains remarkable either way. 

A Hefty ETH Supply Decrease

One of the crucial metrics for Ethereum is how much of its supply can be found on exchanges today. More often than not, the weekly changes will be rather spectacular. The past week is no different, as there is a  424,504 ETH swing. Thankfully, it is a decrease in exchange balances, even though some platforms noted a substantial influx of ETH in that period. Moving funds from one platform to the next is a common practice in crypto.

Such an outspoken exchange balance decline can give rise to prominent ETH price momentum. The past week has been a mixed bag for all markets, with losses followed by a recovery, and now there is renewed bearish pressure. It is tricky, so make sense of it all, as no one knows what will happen next. Such an outflow of Ether results in less liquidity, although it may not be sufficient to make a meaningful difference. 


Source: Viewbase

The most significant deficit is noted by Binance, which saw 15% of its balance sheet removed. FTX reported another six-digital balance decrease in that same week. On the other hand, platforms like Kraken, Bitfinex, Huobi, and Bitstamp saw substantial Ether deposits. A lot of network activity for the second-biggest cryptocurrency by market cap. It makes one wonder where the funds are going and whether they will come back to these exchanges shortly. 

For now, Ethereum remains in bullish territory, although no one should expect a 20% price jump either. All markets are still subdued by traders, although the reasoning remains unclear. That process is not unique to Ethereum either, as Bitcoin is already going in the red on the daily chart. An interesting second half of the week lies ahead for all crypto assets. 

Transaction Spike As Short-Term Ethereum Supply Moves

Despite this dip in exchange volume, there is a notable increase in transaction activity. Ethereum has hit a monthly high for the number of transactions. That is interesting, as it confirms network activity picks up. Moreover, it would appear the supply last moved in the past three to six months is more active. That may hint at some Ether price suppression in the coming days.

Source: Glassnode

Moreover, the exchange outflow is peculiar. The number of addresses receiving from exchanges has hit a monthly low. That seems to confirm the theory of funds moving from one exchange to the next. Why that activity occurs is a mystery. One option is how traders want to exploit lower liquidity on one platform to influence the price for monetary gain. Anything is possible in the cryptocurrency world, even if it may not make much sense at first.