[Analysis] "Exchange Ethereum holdings plunge…suggesting potential price increase"

Recent data show that major exchanges' Ethereum (ETH) holdings have plunged over the past two months.

On the 7th (Korean time), CryptoQuant contributor CryptoOnChain said in a report that "they have decreased by more than 2.6 million from late June to early September."

In particular, from August 23 to September 5, about 700,000 Ethereum were withdrawn from Binance alone, and about 900,000 Ethereum flowed out of Coinbase during the same period.

The contributor said, "The fact that Ethereum holdings are decreasing across exchanges and on major exchanges simultaneously can be interpreted as investors preferring to hold rather than sell Ethereum," and "this leads to a decrease in circulating supply (supply), which, if demand increases, can result in upward price pressure."

As of 3:56 p.m. that day, Ethereum stood at 4286 dollars, down 0.30% from the previous day according to CoinMarketCap.