Ethereum Price Correction: Self-Custody Soars as Exchange Holdings Hit Record Low
The post Ethereum Price Correction: Self-Custody Soars as Exchange Holdings Hit Record Low appeared on BitcoinEthereumNews.com.
In recent developments, a substantial number of Ethereum addresses have withdrawn their funds on a significant scale. This movement coincides with a decrease in interest from new Ethereum addresses. Despite the excitement around spot ETH ETFs, Ethereum has undergone a noticeable price correction. Analyzing the shift in Ethereum holdings and market dynamics. Discover what these trends mean for the future of ETH. Ethereum Self-Custody on the Rise According to Santiment’s latest data, there is an ongoing shift in the distribution of Ethereum holdings, characterized by users moving their ETH away from exchanges. Remarkably, the top 100 exchange wallets have seen a significant drop, currently holding only 8.41 million ETH—marking an all-time low since May 2018. This suggests a decreasing concentration of Ethereum on exchanges. Conversely, the top 100 non-exchange wallets have reached an all-time high of 68.39 million ETH, symbolizing a rise in self-custody. It indicates that more users prefer to store their assets in personal wallets rather than on exchanges. Continuing this trend could bolster Ethereum’s claim to decentralization, as a more distributed network aligns with fundamental blockchain principles. However, this shift towards self-custody could reduce liquidity on exchanges, potentially leading to higher price volatility for Ethereum. With fewer coins readily available for trading, market movements might trigger more pronounced price fluctuations. Implications of Reduced Liquidity Even as self-custody grows, there are critical warning signs for ETH’s market stability. Notably, some major addresses have been liquidating substantial amounts of their holdings without showing any accumulation behavior. This trend could exert downward pressure on ETH prices in the near future. Despite this, retail investors continue to show a stable interest in ETH, which mitigates some concerns regarding its price performance. Retail Interest Declines Interestingly, while retail investors remain involved with ETH, their activities haven’t significantly influenced its price. Additionally, Ethereum’s…
Filed under: News - @ June 16, 2024 8:16 am