Ethereum Exchange Balance

Definition ∞ Ethereum exchange balance represents the total amount of Ether (ETH) held in cryptocurrency exchange wallets. This metric provides insight into the supply of ETH readily available for trading. A decrease often suggests investors are moving assets to personal wallets for long-term holding, while an increase might signal an intent to sell.
Context ∞ Analysts frequently monitor Ethereum exchange balances as a key indicator of market sentiment and potential price movements for ETH. Significant fluctuations in this balance often coincide with major market events or shifts in investor behavior, making it a relevant data point in cryptocurrency news.