• Ethereum (ETH) has seen a 5% decline in the past couple of days, with exchange supply falling to its lowest levels in five years.
• The recent decrease has turned Ethereum’s trend from bull to bear, with the Relative Strength Index (RSI) line dipping just below the neutral region.
• According to Santiment and CryptoQuant reports, there have been more Ethereum outflows than inflows and volume activity indicates low movement.
Ethereum Price Decline
Ethereum [ETH] has fallen by over 5% in the past couple of days, dropping its exchange supply to its lowest level in almost five years. Despite previous increasing trends starting back in January, recent price movements have halted this progression.
RSI Line is Below Neutral Region
The Relative Strength Index (RSI) line has dipped just barely below the neutral region due to a 4% value decline on 3 March. The long Moving Average (blue line), which also served as support, was recognized at about $1,513 and $1,448. Resistance was found in the $1,600 to $1,700 price range.
Decreasing Exchange Supply
A recent Santiment report showed that the percentage of overall Ethereum (ETH) supply on exchanges has decreased due to this price decline. This is currently at around 11%. Additionally, CryptoQuant’s Exchange Netflow statistic shows more ETH outflows than inflows due to withdrawals rather than sell-offs being affected by the fall in price.
Low Volume Activity
Volume activity also indicates low movement with an overall steady decrease over time since December last year.
Overall it can be seen that Ethereum’s most recent downturns have caused a reduction not only in ETH prices but also ETH holdings on exchanges as well as their volume activity.