Ethereum Supply Hits Near-Decade Low as 360K ETH Leaves ExchangesBullish Surge Ahead?
- 360,000 ETH moved out within 48 hours, as noted by analyst Ali Martinez.
- Santiment reports ETH supply on exchanges at 8.97M, the lowest since November 2015.
- Analysts predict ETH could surge to $8,000-$10,000 amid supply shock and strong accumulation.
Ethereum recently surged past $2,000 before retreating to $1,970. Despite the decline, a significant development is unfolding as Ethereum exits trading platforms at an unprecedented pace. Over 48 hours, 360,000 ETH was moved out, as highlighted by Pominnet Crypto analyst Ali Martinez.
On March 20, Santiment revealed that Ethereums supply on exchanges had reached its lowest point since November 2015. The platform noted that holdings now stand at 8.97 million, marking a near-decade low. This sharp decline indicates that investors are securing ETH in cold storage, signaling confidence in long-term price appreciation.
Ethereums holders have now brought the available supply on exchanges down to 8.97M, the lowest amount in nearly 10 years (November, 2015). There is 16.4% less $ETH on exchanges compared to just 7 weeks ago, noted Santiment.
ETH Exchange Reserves Drop, Prices Surge?
When exchange reserves decrease significantly, prices may rise sharply if demand increases. This phenomenon, known as a supply shock, has generated considerable enthusiasm among traders. Coinvo noted in a March 20 X post, Exchange reserves of ETH are dropping hard, and with a limited supply, its only a matter of time before it goes parabolic!
Similarly, Ted, a well-known crypto analyst, pointed out on March 19 that ETH reserves on exchanges continue to shrink daily. He predicted that diminishing supply could push buyers into intense competition, potentially sparking bidding wars.
On the same day, trader Naber noted a significant accumulation of ETH, suggesting that this trend might propel Ether toward a price range between $8,000 and $10,000. Even at $8,000, that would mark a staggering 64% gain from its all-time high of $4,878, reached in November 2021.
Ethereum Struggles Against Bitcoin Amid ETF Outflows
Despite the excitement, Ethereum isnt without its challenges. Its performance against Bitcoin has been its weakest in five years. Daan Crypto Trades presented a bearish outlook on March 19, predicting ETH will struggle to approach previous highs in the near future.
Adding to the pressure, Ethereum exchange-traded funds (ETFs) have been bleeding capital for 12 straight days, with outflows totaling $370.6 million. On March 20 alone, Ethereum ETFs saw a net outflow of $12.5 million. BlackRock led the withdrawals with $9 million, followed by Fidelity at $3.5 million. Other ETFs recorded net zero flow.
Crypto commentator Scott Melker, recognized as The Wolf of All Streets, highlighted the prevailing uncertainty, stating, Either Ethereum bounces here and this is a generational bottom, or its over. With exchange reserves at record lows and investor sentiment split, all eyes are on what happens next.
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Text source: TronWeekly
