Ethereum stays on exchanges - pressure on the price intensifies

Ethereum continues to struggle to hold the $2,000 mark, weakening investor confidence. One of the key market indicators - the volume of coin withdrawals from exchanges - has reached its lowest value in the last seven months. This may signal traders' increased caution and their readiness for possible sales.

The decline in ETH withdrawal activity since the end of January is confirmed by Glassnode data. Thus, on 25 March, only 59,755 coins were withdrawn from exchanges - a record low since August. This suggests that investors are in no hurry to transfer assets to personal wallets or cold storage, preferring to keep them in liquid form. As a rule, such behaviour indicates expectation of favourable moment for deals, including possible sell-offs.

An additional factor of pressure on the price is the growth of deposits in Ethereum. Since the beginning of March, the volume of coins sent to exchanges has increased by 10%. Historically, such dynamics indicates an increase in sales, which leads to a strengthening of bearish sentiment and an increase in supply on the market.

Despite this, the daily chart demonstrates that Ethereum is still holding an uptrend. If the volume of coin withdrawals starts to grow and the pressure from sellers weakens, the exchange rate could reach $2,148. Otherwise, stronger selling could trigger a breakdown of the support line and the price could drop to $1,759.