Ethereum Crashes to 6-Week Lows Despite ETH on Exchanges Declining

The number of ETH sitting on crypto exchanges continues to decrease and is now down to its lowest position since public trading began almost a decade ago.

However, that has not stopped the price of the second-largest cryptocurrency from further dropping to a new 6-week low.

• CryptoPotato reported in late March that the Ethereum supply held on exchanges had declined to just 10.31%.
• It seems investors have only continued withdrawing their ETH portions from trading platforms, as Santiment updated that the percentage has further declined to 10.1%.
• The analytics resource asserted that this is the lowest figure since the asset began public trading after its launch in 2015.

👛 As #Ethereum has dipped to $1,780 today, we’ve seen exchange supply continue to decrease. The percentage of $ETH on exchanges is at its lowest (10.1%) since public trading began in 2015. This is essentially the #AllTimeHigh for non-exchange holdings. https://t.co/WVmeAJhhMM pic.twitter.com/eMXoRh9R76

— Santiment (@santimentfeed) May 11, 2023

• At first, this data should sound bullish for the asset. This is because the selling pressure should be lower, given the fact that there are fewer coins sitting on trading platforms.
• However, this has not been the case for the past few days. ETH touched $2,000 less than a week ago, but the subsequent rejection pushed it down hard.
• After the CPI announcement on Wednesday, it pumped to $1,900 once again. Since then, though, ETH has plummeted by over $200 and earlier today charted a 6-week low of $1,740 (on Bitstamp).