ETH bullish sentiment received a boost as Ethereum balance declines on exchanges
Data from IntoTheBlock analytics indicates that nearly 327,000 ETH have left exchanges over the past seven days. The on-chain analytics firm notes that the second largest cryptocurrency has seen seven days of consecutive outflows from exchanges. This follows the trend of decreasing exchange balance seen from 2021 as Ethereum’s price grew.
$ETH has seen 7 days of consecutive outflows from exchanges.
As the price increases, the supply available to buy from exchanges has been decreasing non-stop in 2021.
Over 327,000 ETH left exchanges since Feb 22nd.👀 pic.twitter.com/3Jrjab4vjJ
— IntoTheBlock (@intotheblock) March 1, 2022
A number of bullish fundamentals are lining up for Ethereum, and recent data shared by Glassnode data aggregator shows that the Total Value Locked in the ETH 2.0 Deposit Contract just reached an ATH of 9,698,594 ETH.
— glassnode alerts (@glassnodealerts) March 2, 2022
Over the weekend, the Ethereum protocol reached another milestone as the number of Ethereum 2.0 validators neared the 300,000 mark. Amid an ongoing transition, Ethereum (ETH) network participants have been preparing for a move from a proof-of-work (PoW) system to a protocol that solely relies on the proof-of-stake (PoS) consensus algorithm.
ETH price action
ETH bullish sentiment received a boost as the Ethereum balance continues to decline on exchanges following improved investor optimism. Outflows to exchanges have grown as a result of the recent rebound in crypto markets.
Ethereum had plunged to the $2,300 support on Feb. 24 but was met with buying from investors. The largest altcoin continued to print gains for the third day in a row reaching an intraday high of $3,045 on March 2. At the time of this publication, Ethereum has added nearly 2% in 24 hours and presently trades at $2,980, as per CoinMarketCap data.
ETH’s strong bullish acceleration rose well above the key barrier at $2,800, with the psychological barrier of $3,000 close by, which might open the way for a retest of the January high at the $3,894 level.
On-chain data from IntoTheBlock shows that as long as ETH remains trading above $2,800, ETH has a good chance of recovering and advancing further because there is no major resistance ahead.