- Net inflows from Ethereum exchanges increased by more than 6%.
- ETH remains below the resistance level.
Over the past month, Ethereum [ETH] There has been a noticeable trend of outflows from exchanges, indicating that investors are moving their holdings away from trading platforms.
The amount of staked ETH continues to grow despite declining balances on exchanges. ETH has striven to maintain price stability amid these changes in investor behavior and network participation.
Monthly Ethereum outflows increase
Analysis of Ethereum trading data by AMBCrypto has revealed a significant net outflow from exchanges, with the data showing that over 1 million ETH was moved off trading platforms in June.
The outflow amounted to approximately $3.8 billion, a significant change of 6.4% from the previous month, signaling a significant decrease in the amount of Ethereum stored on exchanges.
Further investigation into exchange reserve data from CryptoQuant reveals the magnitude of this change: at the start of June, the total amount of ETH held in exchange reserves was over 17 million.
By the end of the month, this figure had dropped to around 16 million ETH. At the time of writing, the reserves stood at around 16.6 million ETH.
Source: CryptoQuant
This decline in foreign exchange reserves usually signals some strategic moves by investors.
This could be either an increase in long-term holdings as investors withdraw their ETH to secure their wallets, or a move to become more actively involved in the Ethereum staking process.
This is especially true with the ongoing development towards Ethereum 2.0. Both scenarios suggest bullish sentiment among holders.
The total amount of staked Ethereum increases
Analysis of Ethereum staking activity provides insightful trends into the behavior of Ethereum holders, especially as exchange balances decline.
According to data from Glassnode, the total number of deposits has been steadily increasing, indicating that more holders are choosing to stake their ETH.
This activity is significant as it signals a shift away from trading and holding Ethereum on exchanges and towards securing it in staking contracts, with the latest data showing deposits exceeding 1.5 million.
Source: Glassnode
Further supporting this trend, data from Dune Analytics revealed that over 33.2 million ETH has been staked. This large amount of staked ETH represents nearly 28% of the total ETH supply.
Overall, the increase in staking activity and the associated decline in exchange-held ETH highlights a strategic shift among holders towards long-term investments.
ETH faces resistance
AMBCrypto’s analysis of Ethereum on the daily chart shows that the price recently fell below the short-term moving average (yellow line), signalling a change in market trend.
This moving average which previously acted as support is now acting as a resistance level due to the recent price decline.
This support-to-resistance reversal is a common technical pattern that signals a shift in market sentiment, suggesting that a price level that once stimulated buying interest is now acting as a barrier to upside.
Source: TradingView
Ethereum [ETH] Price Forecast 2024-25
At the time of writing, Ethereum is trading at around $3,430, down a small amount of less than 1%.
Immediate resistance, defined by the short-term moving averages, is currently in the $3,500 to $3,600 range.
