Key highlights:
- ETH balances on exchanges are at their lowest levels since 2018, and it is a bullish sign for an imminent bull run
- ETH price action is currently underperforming against BTC. Since Bitcoin leads the market, altcoins like Ethereum are likely to follow the trend once BTC reached new peaks
- The interest in DeFi is seeing a revival, and this factor can help boost ETH as well
Although ETH has strong fundamentals and is the spine of the decentralized finance ecosystem, its price action has been sharply underperforming BTC for a few weeks now. ETH’s price is now below its peaks in 2020, while BTC’s price is at its highest levels since the massive bull run of 2017.
ETH price action is bullish right now, and many on-chain and fundamental indicators show that. ETH 2.0 is making progress, and DeFi users are using the Ethereum network heavily. One of the apparent signs of this bullish scenario is the balance of ETH on cryptocurrency exchanges. This balance is at its lowest levels since 2018, and it means less potential selling pressure for this cryptocurrency.
ETH is consolidating, but its perspective is bullish
ETH is still trading below its 2020 peaks. The coin rallied earlier in the year, when the DeFi fever reached its peak. However, Ethereum is trading at better levels compared to its lows after the enthusiasm for DeFi subsided. However, the impending release of Ethereum 2.0 is a bullish stimulus, and now we can imagine Ethereum as a sleeping giant.
The lowest balance of ETH on exchanges
Holdings of ETH on exchanges are meager at the moment, and it is unprecedented since 2018. That is a sign that bulls can hope for. A similar scenario happened for BTC as well, and its balance on exchanges was at the lowest levels before the recent bull run.
Santiment, a cryptocurrency market analysis company, recently explained this metric. The firm claims that only 13.35% of the total ETH is now on exchanges, and it is a two- year turning point for the cryptocurrency. Combining this metric with the fact that BTC is the market leader, and it is reaching new peaks, we can conclude that ETH is in a bullish position at the moment. DeFi has also been showing a revival, which also bodes well for ETH.
Final thoughts
The story of ETH is very similar to the story of BTC. Since the Black Thursday crash in March, BTC’s balance on exchanges was continuously decreasing, and finally, the bull run started. The same is happening for ETH, and the ratio of ETH on exchanges has been falling since late August and early September. This information confirms that some good news is on the horizon for Ethereum. Please note that the cryptocurrency market is a high-risk space. Always do your research, and do not limit yourselves to one resource.
