Ethereum Surges 27% as ETH Exchange Balance Drops 18%: Bitcoin Balance Increases

The amount of ETH held on exchanges decreased while the price of Ethereum rose. Bitcoin’s exchange balance slightly increased during the same period.

Exchange balance indicates the amount of coins held in the wallets of cryptocurrency platforms.

Santiment Intelligence data showed that between June 3 and August 27, the ETH exchange balance fell from approximately 7.69 million to 6.28 million coins. Consequently, the amount of Ethereum held on exchanges decreased by approximately 1.4 million ETH, or 18%.

This trend continued even during the period when Ethereum prices were rising. After August 19, another 275,000 ETH left exchanges, and the balance reached the lowest level of the analyzed period. Ethereum has gained approximately 27% in value since August 16.

Bitcoin Balance Increases While Ethereum is Withdrawn from Exchanges

On the Bitcoin side, the trend reversed. During the same 12-week period, the BTC exchange balance increased by approximately 0.25% and remained in the upper range of the recent period. While the Bitcoin line on the chart remained largely horizontal, the decline in Ethereum balance continued from early June to late August.

The data revealed that the exchange-held supply of the two major cryptocurrencies is moving in opposite directions.

As such, the data indicates a divergence in the supply of Ethereum and Bitcoin waiting on exchanges. However, the change in balance alone does not explain why the coins were withdrawn or the purpose behind the increase on the Bitcoin side.