Ethereum Holders Flee Exchanges Amid Price Surge

Ethereum holders have been withdrawing coins from exchanges at an accelerated pace even as the price of Ethereum approaches $2,550. According to data from Santiment, exchange-held ETH dropped by nearly 18% between June 3 and August 27, with a total of 1.4 million coins withdrawn since early June.

The decline in exchange balances is not mirrored by Bitcoin, which saw its balances on exchanges rise by about 0.25% over the same period. This divergence suggests that traders are positioning themselves differently across the two largest cryptocurrencies.

Ethereum's price has climbed roughly 27% since August 16, but the outflow of coins from exchanges continued unabated through this rally. In fact, an additional 275,000 ETH left exchanges after August 19, marking the lowest point in exchange balances for the twelve-week period.