According to on-chain analytics firm Santiment, Ethereum has seen its supply held by top exchange addresses rise, as traders dump their holdings onto large exchanges during the 2022 market decline.
🐳 #Ethereum has seen its supply held by top exchange addresses rise, which makes sense with traders dumping their holdings on to large exchanges during the 2022 slide. Watch for a decline in top $ETH exchange address holdings as a #bullish signal. https://t.co/NPq4J018bn pic.twitter.com/Y9Q1vMfn14— Santiment (@santimentfeed) August 3, 2022
It reports that a combined 7 million ETH are now being held by the top 10 exchange addresses, which marks the highest since May 2021. Santiment notes that a decline in the top ETH exchange address holdings might be a positive signal for the price.
In addition, Glassnode reports that Ethereum gas prices have dropped to 17.5 Gwei on a seven-day median basis, which represents the lowest network congestion and gas price since May 2020, before DeFi Summer and before the start of the bull market.
This indicates that there has not been a surge in new usage and, generally, relative activity for Ethereum is at a multi-year low.
As a result, the EIP1559 ETH burn rate decreased, with the total ETH burned accounting for just 11% of the total issuance. This effectively indicates that compared to all of post-EIP1559 history, a sizable amount of ETH is entering the market.
Here is a positive signal regarding price
At the time of publication, Ethereum was changing hands at $1,656, up 4.92% in the last 24 hours and 13.35% weekly.
In many ways, the recent uptick in Ethereum's price in July has provided bulls, who have endured the market's relentless downturn for nearly nine months, with much-needed comfort. The digital asset market has historically suffered during the 2022 bear market.
Since the May 2021 sell-off, the demand for Ethereum transactions has been gradually declining, with recent weeks witnessing just a little spike in activity. According to Glassnode, if this upward trend can hold up, it could be beneficial for the price and is something to watch out for.
As U.Today reported, the expected timeline for the Goerli proof-of-stake transition, which remains the last testnet to merge, is expected to occur between Aug. 4 and Aug. 12.