Ethereum (ETH) on Exchanges at All-Time Low; Bullish?

Ethereum ($ETH), the second-largest cryptocurrency, has set a crucial record: the share of its supply held on centralized exchanges has never been lower. Typically, analysts treat this as a bullish midterm signal.

Ethereum ($ETH) supply shock coming, this metric says

Share of Ethereum ($ETH) supply stored on centralized exchanges across the globe reached absolute low in the entire asset's history. As of late August 2024, only 9.75% of Ethers ($ETH) are sitting on CEXes, Glassnode data says.

For the first time since Ethereum's ($ETH) public release, less than 1 in 10 coins is deposited on centralized exchanges.

Analyst Leon Waidmann, Onchain Foundation's Head of Research, is excited by the potential of this process for the dynamics of the $ETH price moving forward:

We are not bullish enough (...) As this development continues, Ethereum supply shock potential is real.

The last time the Ethereum ($ETH) community was sending Ethers to CEXes was in March 2024, to fix profits amid its current price ATH.

The interest in withdrawing Ethers from exchanges mirrors the apathy of sellers: more and more $ETH holders are going to keep their $ETH in order to sell it at better prices.

Ethereum ($ETH) gas price lost 85% in last year

As of press time, the Ethereum ($ETH) price is struggling to stay above $2,810, being down by 1.6% in the last 24 hours. Daily trading volume also declined by 3.65%.

The process of the reduction of the $ETH share on CEXes is accompanied by another major trend. Using Ethereum ($ETH) has never been cheaper, as gas prices target all-time lows in August 2024.

Ethereum's ($ETH) average gas price dropped to 2.6 Gwei: sending $ETH transactions at the normal speed costs roughly $0.28 right now.

A year ago, this metric was above 16 Gwei: Ethereum ($ETH) gas dropped thanks to the implementation of network upgrades and reduced on-chain activity on Ethereum's L1.