The data platform on the chain, Santiago, states that the Etherfrog has a rare backlash in this round: While the price rises, currency holders do not transfer more currency to the exchange, but continue to do so on a large scale. As the ETH reserves on the trading platform continue to decline, market availability is further tightened.
Reserves decreased by 18 per cent since early June
The data show that the number of ETH held by the exchange dropped from 7.69 million at the beginning of June to 6.28 million, a cumulative decrease of approximately 1.41 million, or 18 per cent. According to Santiago, this means that an increasing number of currency holders choose to transfer assets to their trust wallet or pledge address rather than remain on the exchange waiting to be sold.
Under common market patterns, investors usually transfer tokens out of the exchange when prices are weak in order to reduce short-term transactions; at the upswing stage, part of the hold-up tends to return to the platform and prepare to cash the gains. But this time, the Ether's chain flow did not follow this pattern.
The upswing is going on.
Since 16 August, the market value of ETH has increased by approximately 27 per cent, to $2528. According to Santiago, there was no apparent concentration pressure on the exchange during this increase. On the contrary, since 19 August, about 275,000 ETH have been transferred out of trading platforms.
This change suggests that some currency holders still prefer to remain in possession rather than sell immediately after the price rebounds. For the market, the decline in the number of ETHs available for immediate trade on the exchange usually weakens short-line outpouring.
Bitcoin reserves are on the contrary.
Unlike the Ethera, bitcoin ' s reserves on the exchange remained largely stable during the same period, with a small increase of 0.25 per cent. According to the article, this differentiation reflects differences in the behaviour of the two types of asset in terms of transactions. Bitcoin holders prefer to leave assets on the exchange in order to carry out transactions quickly in the event of price fluctuations.
However, tightening supply did not immediately push ETH to break critical resistance. Citing the chart, it states that the rebound in the vicinity of US$ 2528 is still in the rearrangement area for a longer period and that the area between US$ 2497 and US$ 2585 remains a more resistance area. If subsequent purchases continue to grow, low exchange reserves may increase price elasticity.