Decreasing Ethereum prices coincide with an increase in withdrawals.
The number of Ethereum (ETH) withdrawals from exchanges has steadily increased over the past week as the price of the asset has fallen from local highs.
According to data provided by crypto.news, the price of ETH has fallen by 3% over the past 24 hours. Ethereum is trading at $1,850 at the time of writing. The second largest cryptocurrency is also down more than 8% from its local high of $2,008 on May 6.
Moreover, the number of Ethereum withdrawals from exchanges has reached around 4,405, marking the 14-month high seen in March 2022, according to data provided by Glassnode.
According to the tweet, the same behavior was seen in December last year, when ETH was trading at around $1,250.
On the other hand, Glassnode data also shows that the amount of active ETH supply between 1 year and 2 years on an average one-day average has reached more than 41,090,025 coins, marking a new all-time high (ATH).
According to a crypto.news report on May 7, the number of ETH deposits on centralized exchanges (CEXs) has seen a sudden spike, putting short-selling pressure on the platforms.
Furthermore, despite the asset’s price drop, fees on the Ethereum blockchain rose to a one-year high of around 260 gwei on May 5. According to data provided by Ultrasonic Money, fees on the Ethereum network are down 63% from the local peak and standing at 95 gwei at the time of writing.
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