Cloud Hosting

The Binance and Coinbase episode with the US Securities Exchange Commission caused havoc in the crypto industry. It caused a decline in the supply of Bitcoin [BTC] and Ethereum [ETH] on Binance, suggesting that investors were losing confidence in CEXes.

Read Ethereums [ETH] Price Prediction 2023-24

Glassnodes latest tweet revealed that after the SEC incident, investors actively withdrew their ETH and BTC from Binance. As per the tweet, Ethereums balance on Binance was around 4.56 million to 4.2 million.

This indicated that they were losing faith in the CEX. In order to keep their holdings safe, investors were moving their assets to self-custody, or DEXes. This was evident from Dunes data.

After a decline, ETHs volume on DEXes registered an uptick, as per the chart ETHs DEX volume has increased on multiple projects such as Curve [CRV], Uniswap [UNI], and more since 11 June.

It was interesting to see that ETH generated the highest revenue in Q1, driven by its high usage and gas fees. According to Messaris recent tweet, Ethereums revenue was $457 million, almost 2.8 times the combined revenue of all other featured L1s.

However, things changed in the second quarter of this year. Token Terminals data revealed that ETHs revenue had declined. After spiking on 5 May 2023, Ethereums revenue plummeted sharply, which was not good for the blockchain.

Though ETHs revenue declined, the tokens price moved the other way. According to CoinMarketCap, ETHs price has increased by nearly 2% in the last 24 hours. At the time of writing, it was trading at $1,665.31, with a market capitalization of over $200 billion.

As per CryptoQuant, Ethereums Relative Strength Index (RSI) was in an oversold position. This might have increased buying pressure and pushed up the tokens price. Ethereums exchange reserve was also green, suggesting that the token was not under selling pressure.

Is your portfolio green? Check the Ethereum Profit Calculator

A look at ETHs daily chart suggested that the uptrend might continue as the market indicators looked bearish. The MACD displayed a bullish upperhand in the market.

Ethereums Chaikin Money Flow (CMF) also registered a downtick. Additionally, its Exponential Moving Average (EMA) Ribbon also pointed out that the bears were leading the market, as the 20-day EMA was below the 55-day EMA.

Follow this link:

Why Ethereums price rise is not cause for celebration yet - AMBCrypto News