Ethereum’s Exchange Reserves Decline as Investors Opt for Long-Term Holding

In just the past week, more than $750 million worth of Ethereum has been withdrawn from major crypto exchanges, signaling a shift towards long-term holding by investors. This trend is further supported by a surge in Ethereum’s daily trading volume by over 80%, according to CoinMarketCap data.

Data from CryptoQuant reveals a significant decline in Ethereum’s exchange reserves, dropping from over $42 billion to about $38.9 billion recently. This movement reflects a withdrawal of more than $4 billion in ETH from exchanges, potentially tightening liquidity and impacting prices.

Despite limited momentum in recent months, Ethereum has seen a rise in profit-taking reaching a two-month high, with some holders cashing out on previous gains. Influencers like Crypto Caesar are optimistic about Ethereum’s potential, citing resistance levels and support zones for potential price movements.

Meanwhile, Ethereum’s co-founder, Vitalik Buterin, has unveiled “The Purge,” a planned upgrade aimed at improving scalability, security, and sustainability for the network. Buterin also addressed concerns about the Ethereum Foundation’s resource management, emphasizing the importance of not staking holdings to maintain decentralization.

Overall, the recent movements in Ethereum’s exchange reserves and price actions reflect a dynamic market environment for the second-largest cryptocurrency by market cap. Investors are advised to verify facts independently and consult with professionals before making any decisions based on this information.