Ethereum held by exchanges increasing fast, is ETH about to rally?

Ethereum held by exchanges increasing fast, is ETH about to rally?

Research has indicated that the amount of Ethereum held by exchanges has surged at a rate not seen in two years.

Crypto asset and network analytics firm CoinMetrics has been tracking exchange flow data, revealing some interesting results in recent months.

Bitcoin held by exchanges has decreased since early March while Ethereum holdings have surged.

According to a tweet, the firm said:

“Over the same period, Ethereum held by exchanges has grown at a rate not experienced since late 2018”

The analytics firm has taken data from the top exchanges in the industry, namely:

  • Binance
  • Bitfinex
  • BitMEX
  • Bitstamp
  • Bittrex
  • Gemini
  • Huobi
  • Kraken
  • Poloniex

The results are interesting, as they could indicate that the Bitcoin halving will not be as bullish as many had expected. It could also be a sign that people are moving BTC into cold storage for the long run.

Conversely, with ongoing development on ETH 2.0 and its highly anticipated switch to proof-of-stake (PoS), exchanges could be loading up on cheap ETH in order to offer staking rewards or stake themselves.

The last time the pattern was similar was in late 2018 when the price of Ethereum dumped below US$100 [AU$156].

Following that market collapse was a rally that saw Ethereum gain over 300% in just six months.

Featured image courtesy of TeeFarm/Pixabay

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