Recently, the Ethereum landscape has seen some unprecedented shifts, with the transfer of approximately 110,000 ETH, equivalent to $181 million, from exchanges last Wednesday. This massive movement marks the highest outflow of the cryptocurrency since August 21. As a result of this shift, the total Ethereum stored outside of exchanges has skyrocketed to a historic 115.88 million ETH.
Santiment, a prominent blockchain analytics firm, recently tweeted insights on the Ethereum network, echoing market trends:
😮 #Ethereum saw about ~110K $ETH ($181M) move off of exchanges Wednesday, the largest outflow day since August 21st. The amount of non-exchange Ethereum now sits at an #AllTimeHigh 115.88M $ETH, while its exchange supply is at its lowest in ~5.5 years. https://t.co/PUOWGt0KS0 pic.twitter.com/u54pp6LZij
— Santiment (@santimentfeed) October 5, 2023
On the flip side, Ethereum’s exchange supply has dwindled to a mere 10.66 million ETH. This amount is the lowest the digital asset world has seen since May 2018. The trend suggests that more and more holders prefer self-custody options over keeping their assets on exchanges. The reasons for this trend are varied, but the growing trust in self-custody and decentralized finance could be the primary factors.
💸 #Ethereum's network has been particularly cheap to use, and this week's average fee level of $1.13 is the lowest since November, 2022. Though not a perfect signal by any means, lower $ETH costs generally lead to a rise in utility and price rebound. https://t.co/ymXFwGJh49 pic.twitter.com/PEGpXMmZ3q
— Santiment (@santimentfeed) October 4, 2023
Another significant highlight for Ethereum is its network’s cost-efficiency. Over the past week, the average fee required to perform transactions on the Ethereum network was a mere $1.13. This low cost is the least seen since November of the preceding year, 2022. Reduced costs on the Ethereum network correlate with increased utility and potential price rebounds.
While it’s critical to approach such indicators cautiously, history has often shown that reduced ETH transaction fees could pave the way for heightened utility. As the network becomes more affordable, it naturally attracts more users and developers, resulting in increased demand. Typically, as the utility of a network grows, its native token, in this case, Ethereum, might witness a corresponding boost in its price.
In the past few days, the ETH token has been hovering between $1,600 and $1,660 in value, with bulls and bears struggling for dominance. At the time of writing, ETH is trading at $1,637, with a 24-hour decrease of 0.51%. The current market cap for Ethereum stands at $196 billion, with a trading volume of $4.61 billion.
The past 24 hours have seen a slight dip in the market, with most tokens experiencing small losses. However, despite this temporary setback, the overall sentiment around Ethereum remains positive. The support level for the token is currently at $1,600, and if bears gain the upper hand, the next support level will be at $1,550. On the other hand, if bulls take over and push the price upwards, the next resistance level is at $1,700.
