Ethereum Supply on Exchanges Hits All-Time Low, Bullish Sign for ETH Price
The supply of Ethereum (ETH) tokens on exchange platforms has reached an all-time low, indicating a bullish signal for the digital asset’s price. According to data from Santiment, ETH tokens on exchanges now account for only 8.04% of the total supply, the lowest level recorded since the launch of Ethereum. This reduction in supply suggests a decline in selling pressure on ETH, which could potentially lead to a price increase in the near future.
Active Addresses on Ethereum Chain Signal Potential Price Recovery for ETH
There has been a notable increase in active addresses on the Ethereum chain, according to Santiment’s metrics. This uptick in active addresses further supports the thesis of a potential price recovery for ETH. As more users engage with the Ethereum network and contribute to its growth, it indicates a positive sentiment and potential demand for the digital asset.
ETH Price Holds Above $2,000 Despite Ongoing Profit-Taking Activities
Despite consistent profit-taking activities by ETH traders since October 2023, the Ethereum price has managed to sustain above the psychological barrier at $2,000. This resilience is noteworthy, as it demonstrates the underlying strength and confidence in the asset among investors. Although profit-taking is a common occurrence in the crypto market, the fact that ETH has managed to hold above $2,000 suggests that there is strong support for the digital asset at this level.
Ethereum Witnesses Lowest Supply on Exchanges Since Genesis
The recent decline in Ethereum’s supply on exchange platforms is significant as it marks the lowest level recorded since the genesis of Ether. This decrease in supply indicates a shift in market dynamics, potentially leading to a decrease in selling pressure on ETH. With fewer tokens available on exchanges, it becomes harder for traders to sell their holdings, potentially creating a supply-demand imbalance that could favor a price increase.
Ethereum Price Could Reach $2,551, Facing Resistance at $2,458 and $2,500
Despite the ongoing profit-taking activities, Ethereum’s price shows signs of a potential recovery. According to technical analysis, ETH price could reach $2,551, which is the 61.8% Fibonacci retracement level of the decline from its peak in April 2022 to its low in June 2022. However, the price may face resistance at $2,458 and $2,500 along the way. It will be crucial to observe whether the bulls can overcome these resistance levels and push the price higher.
In conclusion, the decrease in Ethereum’s supply on exchanges and the increase in active addresses on the Ethereum chain are positive indicators for the price of ETH. Despite ongoing profit-taking activities, the price of Ethereum has held above $2,000, highlighting the resilience of the digital asset. With the lowest supply on exchanges since its genesis, Ethereum could potentially experience a price recovery, with a target of $2,551. However, it is important to monitor the resistance levels at $2,458 and $2,500 as potential hurdles for the price to overcome.
Analyst comment
Positive
