Crypto analytics company Santiment reveals a factor that is likely to herald the start of a bullish phase for Ethereum (ETH).
Sentiment says that the volume of Ethereum on exchanges has increased and its fall would signal the beginning of a bullish cycle.
“Ethereum has seen its supply held by top exchange addresses increase, which makes sense with traders shedding their holdings on major exchanges during 2022. Watch for a drop in top ETH exchange address holdings as a bullish signal .”
According to Santiment, the amount of Ethereum held on the top ten crypto exchanges is now over seven million, a number that was last reached in May 2021.
Sentiment says that the ratio of Ethereum held outside of crypto exchanges to Ethereum held by exchanges has hit a one-year low.
Crypto analytics further says that the reason the transaction fees of the second largest digital asset by market capitalization have remained low is due to the limited number of Ethereum in circulation.
“Ethereum transaction fees have remained extremely low despite the rise in prices since mid-June. The rarer circulation has played a large part in the lower cost, and charges are expected to remain reasonable until there is a considerable degree of fear of missing the opportunity to get in from the crowd.”
According to Santiment, Ethereum transactions cost less than $1 on average.
Disclaimer: The views expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and that any losses are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/Refluo