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Ethereum staking rises, exchange reserves dip: What this means for ETH
(HTM) Source
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* _Ethereum's netflow from exchanges increased by over 6%._
* _ETH has remained below its resistance level._
Over the past month, Ethereum [ETH] has experienced a notable trend of
outflows from exchanges. It indicated that investors were moving their
holdings away from trading platforms.
Despite the reduction in exchange balances, the volume of ETH being
staked has continued to grow. ETH has been endeavoring to stabilize
its price amid these shifts in investor behavior and network
participation.
## **Ethereum increase monthly outflow**
AMBCrypto's analysis of Ethereum's transaction data revealed a
significant net outflow from exchanges. The data showed that over 1
million ETH moved out of trading platforms in June.
This outflow, valued at approximately $3.8 billion, marked a
considerable 6.4% month-over-month change. It indicated a substantial
reduction in the amount of Ethereum held on exchanges.
Further examination of the exchange reserve data from CryptoQuant
highlighted the magnitude of this shift. At the beginning of June, the
total ETH held in exchange reserves was over 17 million.
By the end of the month, this figure had decreased to around 16
million ETH. As of this writing, the reserve was around 16.6 million
ETH.
Source: CryptoQuant
This decline in exchange reserves typically suggests a couple of
strategic movements by investors.
It is either an increase in long-term holding, as investors withdraw
ETH to secure wallets, or a move to engage more actively in the
Ethereum staking process.
This is especially true with the ongoing development towards Ethereum
2.0. Both scenarios imply a bullish sentiment among holders.
## **Total Ethereum staked increases**
The analysis of Ethereum's staking activity offers insightful trends
into the behavior of its holders, particularly with the decreasing
balances on exchanges.
According to data from Glassnode, there has been a consistent increase
in the total number of deposits. This indicated that more holders were
opting to stake their ETH.
This activity is significant as it suggests a shift from trading or
holding Ethereum on exchanges to securing it in staking contracts.
According to the latest data, the number of deposits has surpassed 1.5
million.
Source: Glassnode
Further reinforcing this trend, data from Dune Analytics revealed that
over 33.2 million ETH have been staked. This substantial volume of
staked ETH accounts for almost 28% of the total ETH supply.
Overall, the increased staking activity and the corresponding decline
in exchange-held ETH underscore a strategic shift among holders toward
long-term investment.
## **ETH finding resistance**
AMBCrypto's analysis of Ethereum on a daily time frame chart indicated
a shift in its market dynamics, with the price recently falling below
its short moving average (yellow line).
This moving average, which previously acted as a support, is now
functioning as a resistance level due to the recent price decline.
This reversal from support to resistance is a common technical pattern
that suggests a change in market sentiment, where the price level that
once bolstered buying interest now poses a barrier to upward
movements.
Source: TradingView
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Read Ethereum's [ETH] Price Prediction 2024-25
* * *
As of this writing, Ethereum was trading at around $3,430,
experiencing a slight decline of less than 1%.
The immediate resistance defined by the short moving average is
currently positioned in the range of $3,500 to $3,600.
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