Leading cryptocurrency Bitcoin (BTC) reaching a new ATH every day while the biggest altcoin Ethereum It also rose above $4,000 in this rally.
Ethereum, which successfully completed the highly anticipated Dencun upgrade yesterday, continues to attract the attention of investors with its strong stance.
At this point, the CryptoQuant analyst stated that ETH showed signs of strength and that this was due to the decrease in reserves in spot exchanges and investors’ ETH He said he had a desire to stake.
Stating that ETH spot exchange reserves are in a constant decreasing trend, the analyst said that this decrease means that there is not much selling pressure on ETH.
According to analyst If this steep downward trend in ETH reserves continues, the price may rise further.
“Ether’s net flows and reserves on spot exchanges after the FTX crash revealed a strong behavioral pattern among ETH investors that has since revealed a strong belief in Ethereum’s future recovery.
The chart clearly reveals that Ethereum’s spot reserve on the entire exchange is in a constantly decreasing trend due to large outflows, and the total staked value of Ethereum is increasing.
The decline in exchange reserves and continued commitment to staking demonstrates an understanding of Ethereum’s intrinsic value and a strong belief in the asset’s staking fundamentals.
The decrease in foreign exchange reserves means that there is not much selling pressure in the Ethereum market.
If this steep downward trend in ETH reserves continues, the price may rise further. “
*This is not investment advice.
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