Crypto analytics firm Santiment is revealing one factor that is likely to foreshadow the start of a bullish phase for Ethereum (ETH).
Santiment says that the volume of Ethereum on exchanges has risen and a decline of the same would signal the start of a bullish cycle.
“Ethereum has seen its supply held by top exchange addresses rise, which makes sense with traders dumping their holdings onto large exchanges during the 2022 slide. Watch for a decline in top ETH exchange address holdings as a bullish signal.”
According to Santiment, the amount of Ethereum held on the leading ten crypto exchanges is now over seven million, a figure last reached in May of 2021.
Santiment says that the ratio of Ethereum held outside of crypto exchanges relative to the Ethereum held by exchanges has reached a one-year low.
The crypto analytics further says that the reason that the transaction fees of the second-largest digital asset by market cap have remained low is due to the limited number of Ethereum in circulation.
“Ethereum’s transaction fees have remained ultra-low despite the price jump since mid-June. Scarcer circulation has played a big role in the lower costs, and fees can be expected to remain reasonable until a fair degree of fear of missing out kicks in from the crowd.”
According to Santiment, Ethereum transactions are costing less than $1 on average.