ETH mega pump coming? Ether on exchanges falls to near-decade low

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Ethereum’s Supply on Crypto Exchanges Reaches Lowest Level Since 2015, Predicting a Major Price Rally

Ethereum’s Supply on Crypto Exchanges Reaches Lowest Level Since 2015, Predicting a Major Price Rally

Ethereum’s (ETH) supply on crypto exchanges has dropped to its lowest level since November 2015, a development that is being seen as a potential catalyst for a major price rally. According to a recent post by crypto analytics platform Santiment, the available supply of ETH on exchanges has decreased to 8.97M, a level not seen in nearly 10 years.

ETH Supply on Exchanges Reaches Lowest Level Since 2015

Santiment reported that ETH had been rapidly leaving crypto exchanges, with balances now 16.4% lower than at the end of January. This suggests that investors are moving their ETH into cold storage wallets for long-term holding, potentially holding more conviction that Ether’s price will rise in the future.

A Significant Decline in ETH Supply Across Crypto Exchanges

A significant decline in ETH supply across crypto exchanges can signal a potential price surge, commonly known as a "supply shock." However, a surge will only happen if demand remains strong or increases to outpace the reduced supply.

Comparison with Bitcoin’s Supply Shock

It is worth noting that a similar scenario played out with Bitcoin (BTC) in January 2023. On January 13, Bitcoin reserves on all crypto exchanges dropped to 2.35 million BTC, hitting a nearly seven-year low that was last seen in June 2018. Just a week later, Bitcoin surged to a new high of $109,000 amid the inauguration of US President Donald Trump.

Crypto Traders and Analysts Predict a Similar Scenario for Ether

Some crypto traders and analysts are predicting a similar scenario for Ether. Crypto trader Crypto General told their 230,800 followers that it is "Just a question of time before the big supply shock." Crypto commentator Ted said in a March 19 post that with ETH supply on crypto exchanges decreasing by the day, "buyers will soon compete, leading to bidding wars."

Potential Price Range of $8,000 to $10,000

Crypto trader Naber said in an X post on the same day that the largest ETH accumulation is taking place, and it may lead to Ether reaching the $8,000 to $10,000 price range. Even at the lower end of $8,000, Ether would be up 64% from its all-time high of $4,878, reached in November 2021.

Bearish Signals

While the supply decline is giving crypto traders hope for ETH, other signals have recently cast a bearish shadow over the asset. Its performance against Bitcoin has been at its lowest in five years. Daan Crypto Trades said in a March 19 post that it is "unlikely to see this anywhere near its highs anytime soon."

FAQs

Q: What is the current price of Ether?
A: The current price of Ether is $1,971.

Q: What is the reason behind the decline in ETH supply on exchanges?
A: According to Santiment, ETH has been rapidly leaving crypto exchanges, with balances now 16.4% lower than at the end of January. This suggests that investors are moving their ETH into cold storage wallets for long-term holding.

Q: What is the potential price range for Ether?
A: Some crypto traders and analysts are predicting a price range of $8,000 to $10,000 for Ether.

Q: Are there any bearish signals for Ether?
A: Yes, its performance against Bitcoin has been at its lowest in five years, and some analysts are predicting that it is "unlikely to see this anywhere near its highs anytime soon."