But here’s where it gets interesting…
None of this happened in a liquid market.
The amount of Ethereum held on cryptocurrency exchanges has dropped to its lowest point since mid-2016. Data from CryptoQuant shows that exchanges now hold around 16 million ETH, which is the same amount they held during Ethereum’s first year of trading.
At the time, ETH was barely established. Today, it is a multi-trillion-dollar ecosystem.
It’s worth noting the difference between Bitcoin and Ethereum. Unlike Bitcoin, which has seen exchange balances recover to where they were in 2019, Ethereum’s balances have decreased. Although over-the-counter (OTC) balances have increased a bit, they still represent a small portion of the total Ethereum supply.
As I’ve been watching the markets, I’m concerned that if trading volume stays low while big investors continue to sell off their positions, it could lead to erratic and unreliable price movements. Essentially, it’s becoming harder to get an accurate read on what things are truly worth.
Despite the recent market challenges, some investors are still buying Ethereum. On February 8th, Bitmine, backed by Tom Lee, added $41.98 million worth of ETH – a total of 20,000 units. Additionally, the hacker known as Infini also took advantage of the price drop, spending $13.32 million to purchase 6,316 ETH at a price of $2,109 each. This purchase happened before the funds were mixed using Tornado Cash.
ETH weakness during low liquidity
At the time of this report, Ethereum was trading for $2,077. This is down significantly from its recent peak of around $3,300, representing a drop of about 37%. The Relative Strength Index (RSI) was measured at 31.22.
The overall trend remained strong, as indicated by an ADX reading of 50.01. Selling pressure was stronger than buying pressure, with the negative directional indicator (-DI) at 35.77 being significantly higher than the positive directional indicator (+DI) at 6.78.
Selling volume has expanded during the decline, with daily volume near 39.7K ETH.
Final Thoughts
- Ethereum falls with exchange balances at 16 million ETH.
- Even modest flows could move price aggressively.
Read More
- BTC Plummets: Fed Cuts Ignored in Crypto’s Absurdist Farce! 🤡💸
- XRP’s Little Dip: Oh, the Drama! 🎭
- US Bill Proposes 21st-Century Privateers to Take on Cybercrime – Seriously
- OpenAI Just Made AI Models Free – Because Who Doesn’t Love Free Stuff?
- Ripple Swoops in on Bitcoin’s Heels: 2030 Gold Rush
- Schrödinger’s Bitcoin Ruse in El Salvador? 🤔
- Silver Rate Forecast
- Bitcoin’s Laziest Coins Finally Roll Off Couch-What Happens Next Will Blow Your Mind! 🍿
- Gemini’s New XRP Credit Card Pays 4% – Swiping Never Felt So Crypto!
- Crypto Chaos: Nasdaq’s $50M Wink to Gemini & Tether’s New Stablecoin Shenanigans!
2026-02-09 12:57