I see lots of people worried about why Ethereum seems to be stuck under 2800 dollars, just as I discussed Bitcoin also being stuck between the 90-100K range. There doesn't seem to be a sign of any bullish momentum when you pay attention to the chart, at least from my little knowledge and perspective. Yet I'm of the opinion that the current price action doesn't really tell the full story going on here.
sourced from pixabay
I saw that within just ten days, there's been massive withdrawals from exchanges. I'm talking 900K ETH. Based on its current price, we are talking about 2.4 billion dollars of Ethereum as of my writing this blog. That's definitely a signal of something important and major happening in the market.
What does it tell:
I believe it shows confidence on the part of the investors. When people usually take their crypto off exchanges (especially centralized exchanges), they send them to their own decentralized wallets to hold instead of selling. So anytime you see mass withdrawals like this, it should tell you the people (ETH investors) are looking at the long-term value of their assets. That in turn reduces the selling pressure and in many cases, sets the stage for some bull run down the line. Now don't take this as financial advice but it's usually a trend I see happen again and again.
Supply on exchanges shrinks = supply squeeze later.
Now, the reason why I think this is kinda like a big deal is primarily because, at the time of writing my blog, ETH is really struggling, and that should obviously cause some form of fear and sell pressure. But no, the ETH investors seem to be very optimistic. They are positioning themselves for a potential rebound which shows that they see a long-term value here.
Price Levels still matter.
Ethereum definitely needs to reclaim 2,800 and actually push past 3K to confirm an uptrend according to one analyst I was reading about today. It's pretty obvious that way, but my focus is more on the fact that the investors are not making decisions simply based off of chart reading but looking at the utility and value proposition of this asset. Crypto doesn't move in a straight line at all, and I have learned with my little experience in crypto that big moves often happen when people least expect them. Based on this, I feel that those who are silently accumulating ETH right now may be making the smart moves which would be hailed later by the bystanders.
Again, don't let my blog put you under any pressure to make a financial decision. Make sure you've done your own research and are sure and convinced about this and any other project before you make an investment. Thanks for reading and I will see you in my next blog.