finbold.com
The supply of Ethereum ($ETH) across several cryptocurrency exchanges has dropped by roughly 475,000 units during the first week of June.
The reported $ETH reserves across Binance, OKX, Gemini, and Bitfinex declined over the past few days, according to data from CryptoQuant analyzed by Finbold on June 8.
Binance reserves fell from 3.87 million $ETH on June 4 to 3.68 million $ETH by June 7, a drop of approximately 190,000 $ETH, which represents a 4.91% decline. Bitfinex saw its $ETH holdings drop from 2.67 million $ETH on May 31 to 2.49 million $ETH by June 7, a 6.74% decrease.
OKX exchange recorded the sharpest decline, with its reserves dropping from 424,000 $ETH to 340,000 $ETH between June 4 and June 7, a decline of 84,000 $ETH, or nearly 20%. Meanwhile, Gemini exchange also saw outflows, declining from 541,000 $ETH to 520,000 $ETH between June 5 and June 7, a reduction of 21,000 $ETH, or 3.88%.
The notable decline in $ETH supply across several cryptocurrency exchanges could signal renewed investor demand.
What’s next for Ethereum price amid declining exchange reserves
Ethereum price has been trapped in a horizontal consolidation since early 2023. The large-cap altcoin, with a market capitalization of about $201.5 billion at press time, recently retested its multi-year support around $1,550, trading at approximately $1,664 on Monday.
As such, if $ETH supply across these crypto exchanges continues to drop over the coming days and weeks, the altcoin could form a potential reversal pattern near its multi-year support level. However, if the Ethereum supply on crypto exchanges increases, it could fuel further selling pressure in the near future.