On-chain data shows Ethereum has observed a large exchange outflow recently, a sign that buying may be going on in the market.

Ethereum Exchange Supply Hits Lowest In 5.5 Years After $181 Million Outflow

According to data from the on-chain analytics firm Santiment, ETH has just witnessed its largest exchange outflow day since August 21st. The indicator of interest here is the “supply on exchanges,” which keeps track of the total amount of Ethereum that’s currently sitting in the wallets of all centralized exchanges.

When the value of the metric goes down, it means that a net number of coins is exiting these platforms currently. Generally, investors take their coins off these central entities toward self-custodial wallets when they plan to hold onto them for extended periods, so this …