Why Ethereum Is Underperforming Despite Falling Exchange Reserves
- Ethereum exchange reserves have fallen from approximately 16.8 million to 15.1 million.
- Recent ETH price action has been driven primarily by spot market buying and selling.
- Relatively small price movement in ETH could trigger liquidation cascades and volatility.
Analysts reviewing Ethereum’s recent performance have identified several factors behind the cryptocurrency’s underperformance compared to Bitcoin. A CryptoQuant report summed up the scenario by noting that Ethereum shows a widening gap between supply restraint and economic demand.
ETH Exchange Reserves Have Declined
Details of the report show that ETH exchange reserves have fallen from approximately 16.8 million to 15.1 million, while the staking rate has risen from below 30% to 33.9%. That is because more ETH is entering staking, while fewer units remain in centralized exchanges. Such a situation re…
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