The crypto market has been withdrawing Ethereum (ETH) from exchanges while dumping Bitcoin to the exchange. Simultaneously, the ETH/BTC pair is currently trading inside the bull flag while staying intact with the 2-month uptrend.
ETH supply on exchange drops by 18%
The market appears to be showing stronger accumulation of ETH than Bitcoin, as investors withdraw ETH from exchanges while BTC balances on exchanges continue to rise. The supply of Ethereum on exchanges dropped by 18%, from 7.69M coins on Jun 3 to about 6.28M on Aug 27. While the ETH supply on exchange keeps tanking, Bitcoin, on the other hand, has been rising.
Over the same 12-week period, Bitcoin exchange balances moved in the opposite direction, increasing by around 0.25% and remaining close to the upper end of their recent range. The interesting part about the dwindling supply of ETH is that the supply fell during a time when ETH prices were falling.
ETH holders were moving their coins off exchanges even while the price was declining. This suggests that many investors were not rushing to sell during the downturn and may instead have been holding or accumulating ETH for the longer term. In other words, the falling price did not trigger a corresponding increase in exchange selling, which could indicate reduced selling pressure and stronger conviction among holders.
ETH/BTC pair maintains 2-month uptrend
When the ETH/BTC pair is considered, it is currently trading inside a bull flag after a spike. Usually, when the price moves inside the bull flag, the breakout will produce a rally that is as large as the flagpole.
Another thing to consider is that the ETH/BTC pair is still maintaining the uptrend that it set since June. So, if the ETH/BTC uptrend that started in June is still intact, it suggests that investor interest and relative momentum remain stronger for Ethereum than Bitcoin. This is an important signal because it shows ETH’s recent strength is not just coming from a broader crypto-market rally; ETH is also gaining ground against BTC specifically.
