Ethereum exchange reserve decline may be a bullish signal - Cointelegraph

Cointelegraph's Jordan Finneseth gives three reasons why ethereum (ETH-USD) exchange reserves are falling to new lows.According to data from on-chain analytics firm CryptoQuant, ethereum reserves at crypto exchanges plumbed new daily lows since the beginning of July.One possible impetus for the reserve drawdown is the increased demand for ether due to the Eth2 staking contract, which exceeded the 6M mark on June 30.In addition, ether may be heading to the decentralized finance ecosystem, as token values and the total value locked in DeFi protocols increase, he adds.The third explanation is the pending London Hard Fork and the EIP-1559 proposal, Finneseth writes. "Several analysts expect the upgrade to positively impact Ether's price due to the transition to a more eco-friendly proof-of-stake consensus mechanism as well as a new 'scarcity' feature that will reduce the number of tokens in circulation."Earlier today, Elon Musk continued his disparaging remarks on bitcoin and ether and