Bearish Signal: Ethereum Exchange Balances Touch 3-Month High

Ethereum had seen its balances on exchanges decline through 2021. This happened despite continuous market rallies that sent the digital asset towards all-time highs. Investors had accumulated all through bull rallies instead of trying to dump their coins, leading to reduced supply on centralized exchanges. This was also propelled forward by the growing popularity of DeFi. However, this trend is starting to reverse as exchange balances are now on the rise. Ethereum Exchange Balances Touch 3-Month High New on-chain reports have shown that Ethereum exchange balances are on the rise once more. After reaching one-year lows in 2021, exchange inflows have begun to pick up, seeing balances rise to three-month highs. Related Reading | Ruby on Rails Creator Backtracks As He Expresses Support For Crypto Data from Glassnode shows that this number is down by more than 700,000 ETH from its December lows. This metric which has been inversely correlated with the price of the digital asset has continued into the new year. Whereas exchange balances had plummeted as the cryptocurrency had seen its price surge, the same balances are growing with the current downtrend. 📈 #Ethereum $ETH Balance on Exchanges just reached a 3-month high of 14,715,388.749 ETH Previous 3-month high of 14,714,748.847 ETH was observed on 21 February 2022 View metric:https://t.co/1dCpD2ey8E pic.twitter.com/TQHqaM3OOi — glassnode alerts (@glassnodealerts) Febru...