Can Ethereum Investors Stay With ETH After This Exit?

  • The reserves of ETH that exited the centralized exchanges did not decrease.
  • The investors accumulated over the past 365 days were still at a loss.
  • Chances of recovery in the near term remain low.

Ethereum [ETH] Reserves on Centralized Exchanges (CEX) fell sharply with much bigger momentum, CryptoQuant Publishing open. According to a disclosure published by Easy OnChain, altcoin transfers from these exchanges have been a whopping 30% more than Bitcoin. [BTC].

Source: CryptoQuant

Read Ethereum price prediction for 2023-2024

Follow the leader, stay true to the cause

This event did not come as a surprise, especially since the collapse of FTX led investors to distrust CEX. Moreso, Ethereum co-founder Vitalik Buterin made comments encouraging self-care over the same period.

At the same time, this was not the only conclusion of the ongoing emigration. In such circumstances, I concluded, investors are not only interested in the safety of assets.

However, this move is indicative of faith in ETH and determination to hold out for the long term. The long-term ownership settlement may be due to Ethereum’s year-over-year performance, which saw a 69.95% decline.

When evaluating the 365-day market capitalization to value realised (MVRV) ratio, Santiment showed that ETH was relatively unimpressive at -28.85%. Although it was a step before the unfortunate dip in July.

For context, the MVRV ratio shows the ratio of the current price of an asset to the average price at which it was acquired. Since this was still in a low area, it indicated that the price of ETH was as well fell under Total cost by a large margin. Therefore, investors put up with low profits and large unrealized losses.

MVRV Ethereum Ratio and OTC Supply

Source: feeling

The over-the-counter offering is more in line with Easy OnChain’s vision for the CEX exit. At press time, Santiment data revealed that the supply of ETH from custodian wallets has increased incredibly to 106.99 million.

Increase the value of 0.21 times If ETH reaches the market cap of Bitcoin?

During the time lapse, investor sentiment towards Ethereum has changed. This was shown by the fear and greed indicator leaving the high fear zone as it moved towards the neutral position. With its state at the time of writing, it was highly unlikely that Ethereum would ever produce a full state market fluctuations.

The long-term?

On the charts, the short-term forecast for ETH indicated a battle between the bulls and the bears. According to the exponential moving average (EMA), ETH might find it difficult to trade outside the $1,200 area.

This was because the 50 EMA (yellow) was placed above the 20 EMA (blue). Such a situation leads to late weakness in the purchasing department.

In the longer timeframe, however, there was hope for a respite. At the time of publication, the 200 EMA (cyan) is holding above the 20 and 50 EMAs. This situation indicates that investors can look forward to the medium and long term for potentially large gains. This may be the case that prevents further negative events that might lead to giving up.

Ethereum price movement

Source: TradingView

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