- Ethereum exchange supply hits 4.9%, lowest ever.
- Potential Ethereum price rally expected soon.
- Supply reduction suggests strong investor confidence.
This event highlights increasing investor confidence and potential price gains for Ethereum, reflecting a broader trend in cryptocurrency market behavior.
The Ethereum exchange supply has declined to just 4.9%, marking its lowest point since inception. Santiment reports that “Ethereum’s exchange supply has hit a historic low of 4.9%, the lowest level in its 10-year history.” According to data from Santiment, over one million ETH were moved off exchanges in the last month, indicating strong accumulation by larger holders.
Investor behavior is shifting significantly, with many transferring Ethereum to cold storage for long-term holding. This shift reduces liquidity on exchanges, aligning with anticipated institutional demand for Ethereum products such as ETFs.
Market reactions to this supply reduction are evident, as Ethereum experienced an 8% price increase, pushing its market value to $307 billion. This price rise aligns with significantly reduced sell pressure amid growing cryptocurrency demand.
The broader crypto market observes similar trends, with Bitcoin’s exchange supply dropping to 7.1%, a level not seen since 2018. Such movements are characteristic of pre-bull market conditions for major digital currencies.
Technical indicators, such as the formation of a Golden Cross on Ethereum charts, suggest potential continued price momentum. Analysts set optimistic forecasts, with some eyeing a $5,000 price target based on historical patterns. This trend also underscores increased interest in blockchain technology applications.
