Based on the data shared from a number of sources, the overall Ethereum (ETH) balance on crypto exchanges has dropped to a 5-year low. The total number of Ethereum (ETH) transactions sped up considerably as investors continued to anticipate an upside movement in the price of the cryptocurrency. It is believed that the move was triggered by a great increase in the staking of Ethereum (ETH), which has rapidly increased since the introduction of the Shapella upgrade.
Currently, it is a matter of conjecture if the price of Ethereum (ETH) would rise or fall under ongoing conditions. As per the data provided by CryptoQuant, it is expected that the overall amount of Ethereum (ETH) has dropped to critical levels. The total amount of ETH on different exchanges now stands at almost the $16 million mark, and such levels have not been reached since 2018. At the same time, Ethereum is down by almost 50% since its all-time high.
The total number of Ethereum reserves on different crypto exchanges has decreased since 2020. However, the reserves started to drop rapidly not too long after the Ethereum network transitioned to a proof-of-stake model following the Merge. Similarly, in 2023 alone, the total Ethereum balance on crypto exchanges dropped from 18.5 million to almost 16 million.
At present, a number of analysts believe that the reserves would continue to fall as the rate of Ethereum staking increases. As per the data provided by Etherscan, ETH tokens worth $41 million have been staked on the Beacon Chain.
Would the Price of Ethereum (ETH) Rise or Fall?
At the time of writing, Ethereum (ETH) surged by approximately 1.46% in the previous 24 hours, and the increase has pushed the trading price up to almost $1,813. Similarly, the total market cap of the token currently stands at the $217 billion mark.
People believe that overall lower reserves indicate a lower selling pressure, along with bullish momentum. Similarly, a lower supply in the market would eventually set the stage for the trading price to surge. The current situation surrounding Ethereum suggests that overall volatility is on the lower side and that overall stability might not be that far.