- Ethereum exchange balances fell 15%, with about 1.15 million ETH leaving exchanges between June 2 and August 18.
- Bitcoin exchange balances rose 1.8% while ETH balances declined, showing contrasting exchange-supply trends for the assets.
- Analysts identified $2,500 as key resistance for ETH as volatile exchange flows accompanied its recent price recovery.
Ethereum exchange balances have fallen while Bitcoin balances increased, according to Santiment. ETH exchange supply dropped about 15% from June 2 to August 18. Meanwhile, analysts Ted Pillows and Michael van de Poppe highlighted ETH’s price recovery as exchange flows turned more volatile.
Ethereum Exchange Supply Keeps Falling
Santiment said ETH held on exchanges fell from about 7.70 million coins to 6.54 million. That represents roughly 1.15 million ETH leaving exchanges over eleven weeks. Bitcoin moved differently during the same period.
From July 28 to August 18, BTC exchange balances increased about 1.8%, or roughly 23,000 coins. ETH exchange balances also declined about 2.2% during that identical period. Notably, ETH closed lower on August 16, 17 and 18.
Santiment linked the declining ETH exchange supply to near-record staking levels and corporate treasury purchases. BitMine alone holds close to 5% of ETH supply, with most of its holdings staked.
Analysts Track ETH’s Next Resistance
Ted Pillows said ETH produced a large daily candle during the recent price move. He identified $2,500 as the next resistance level for Ethereum. Pillows added that reclaiming $2,500 would remove the prospect of ETH falling to a new bottom.
However, Michael van de Poppe said the rally may not continue without pauses. Van de Poppe said ETH had moved toward 0.033 BTC after sweeping that level. He also said retracements could provide potential buying areas.
The chart shows ETH trading between roughly $1,870 and $1,950 from August 8 through August 18. The price then moved sharply higher toward $2,300 to $2,320.
Exchange Flows Turn Volatile
On August 19, ETH exchange netflows recorded spikes near $75 million and $55 million. Those inflows increased the amount of ETH moving onto spot exchanges. However, a subsequent outflow reached roughly $55 million around August 20.
Smaller inflows also appeared between $20 million and $35 million. The chart shows ETH holding near $2,200 to $2,300 during these flow changes. Meanwhile, the reported exchange outflow followed the earlier large inflow spikes.
According to Santiment, ETH continues moving away from exchanges while Bitcoin exchange balances move higher. The two assets therefore recorded opposite exchange-balance trends across the reported periods.
