While the leading cryptocurrency Bitcoin (BTC) reaches a new ATH every day, the largest altcoin Ethereum 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, CryptoQuant analyst also stated that ETH showed signs of strength and said that the reason behind this was the decrease in reserves in spot exchanges and the desire of investors to stake ETH.
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 the 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 constantly trending downward 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.
