Analyst Lark Davis states that Ethereum exchange reserves had decreased quite significantly compared to when the price of the asset was at its highs.
Because of the very recent hits to the crypto market, Ethereum and other cryptocurrencies have seen significant dips in overall price and volume. The asset is currently experiencing some struggle in keeping up because of its price dropping below $3000. The crypto market might be making its way towards a bear position, as various cryptocurrencies are struggling to keep their price intact, now registering lower highs and lower lows with every drop and come back.
Ethereum Time Bomb
In a time period of just two months, Ethereum’s price saw another decrease, dipping below the $2700 region. The crypto market faced a lot of tension, especially in the month of September, and now hopes are short, even for when the assets start to recover back to their normal positions. Despite the recovery phase being in motion, Crypto Analyst Lark Davis thinks that this situation should not be taken lightly at all. Referring to some crypto exchange statistical information, Lark Davis says that Ethereum might be on the way to becoming an exploding “time bomb”.
Drop in Exchange Reserves
Taking a look at the statistical data provided by Trading View, it is very clear that the volume of exchange reserves has seen quite a significant drop in the past few months. However, it is to be noted that Ethereum is not the only one that is relating to this situation because the same is happening with Bitcoin as well, where exchange reserve volumes have dropped. This type of behaviour does not particularly reflect upon how bull markets have been working in the past. Rallies in the past have resulted in the rise in exchange reserves because of investors switching to centralized exchanges, selling their assets and making big money out of them.
But in general, this year has been a roller coaster ride for the crypto market. Exchange reserves dropped instead of rising as the price spiked up. According to sources, around 21Million Ethereum was present on centralized exchanges, and despite the crypto market recovering from drops, exchange balances continue to fall. As of now, there is currently 18Million Ethereum present in centralized exchanges, highlighting a 15% drop compared to the past.