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Will Ethereum bulls regain control of ETH with massive exchange outflow?

  • Ethereum exchange balances hit four-year lows as ETH outflow continues. 
  • Ethereum on-chain metrics are leaning in favor of bulls as the number of non-zero addresses hit a new all-time of 93.8 million.
  • The total value of Ethereum locked in the ETH2.0 deposit contract hit a record high at 15.7 million ETH. 

Ethereum bulls are wrestling bears for control as on-chain metrics favor market participants with a bullish bias. The total volume of Ethereum locked in the ETH2.0 beacon chain hit a record high, fueling a bullish narrative. 

Also read: Why the demand for Ethereum is high despite rising gas fees, is it time to buy?

Ethereum held by non-zero addresses hits new all-time high

Ethereum price witnessed a 7% pullback since February 6. The altcoin is now changing hands at $1517.47.

The volume of Ethereum held by non-zero addresses hit a new all-time high at 93.8 million, based on data from crypto intelligence tracker Glassnode. 

Ethereum non-zero addresses

Non-zero addresses on the Ethereum Network 

Glassnode data reveals on-chain metrics that fuel a bullish narrative for Ethereum price. The altcoin’s balance on exchanges hit a four-year low of 18.94 million. A decline in exchange wallet holdings of the second-largest cryptocurrency by market capitalisation signals a reduction in selling pressure on ETH across exchange platforms. 

The metric hit a four-year previously on February 11. Since then ETH outflow picked up pace. Interestingly, the total value of ETH tokens staked on the ETH 2.0 deposit contract hit an all-time high, signaling a rise in popularity of “staking” among market participants. 

Could Ethereum bulls fuel a recovery in ETH? 

Ethereum yielded 7% losses for holders over the past weeks in response to the regulatory crackdown of the US Securities and Exchange Commission on Kraken and “staking-as-a-service” products on exchange platforms. 

On-chain metrics like supply on exchanges and number of non-zero ETH addresses climbed significantly, supporting the bullish thesis for the altcoin. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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