Amid the price rally, the Ethereum balance on all cryptocurrency exchanges has dropped to the lowest level noticed since 2018. According to Glassnode data, only 7% of Ethereum’s circulating supply is held on centralized exchanges.
Currently, exchanges have 8.1 million ETH in the reserves. CryptoQuant data showing that the number of Ethereum stored on exchanges has fallen significantly over the past two days. Alex Saunders, who highlighted a 10% fall in reserves, said:
“Exchanges could be out of $ETH within 48 hours. Demand has skyrocketed. Exchange reserves fell 20% from 10M to 8M in the last few hours. With targets of $5k, $10k & $20k long term, I doubt many HODLers will sell their ETH in the $1-2k range.”
Investors are withdrawing their assets from the crypto exchanges in concern of a hack. According to the market data, the total number of Bitcoin on exchanges has also declined by 2.4%. The total number of Bitcoin balances on all cryptocurrency exchanges hit $2.3 million, years low.
Ethereum Gas Fees Surges Abruptly
As reported earlier, the Ethereum network transaction fees have grown almost 400% since January 1. According to data from Glassnode, the network transaction gas fees have smashed a new all-time high of $898,000 in a single day, surpassing the last high recorded in 2018.
Gas fees climb up as demand on the Ethereum network rises. Highly elevated network congestion leads to longer processing times. Recently, Ethereum has launched its long-awaited network upgrade, called Ethereum 2.0. It is an essential upgrade to the network. It intends to direct the network’s security by bringing modifications to its infrastructure—most prominently the shift to a proof of stake (PoS) model from a proof of work (PoW) consensus mechanism.
According to crypto market data, Ethereum is presenting various bullish signals. Currently, it is trading at $1,192.