The volume of Ether in centralized crypto exchanges has fallen by about 5% over the past two weeks, according to a study conduced by CryptoQuant.
According to them, the outflow of digital currency from trading floors eases the pressure on the asset from sellers. As a result, the value of the coin starts to rise due to its low supply.
If investors, on the contrary, prefer to increase their reserves on exchanges, then they are preparing to sell the cryptocurrency.
The researchers have noted that an increase in the exchange balance of a digital currency is a bearish signal.
Since mid-March, traders have withdrawn 1.2 million Ether from exchanges. As a result, the altcoin exchange balance has decreased in two weeks from 24.7 million to 23.5 million ETH. Investors have reduced their holdings in cryptos by $4 billion.