Monday, March 4, 2024

Ethereum Supply Wanes on Exchanges: Potential Price Signal, But Proceed with Caution.

The supply of Ethereum, the second-largest cryptocurrency by market capitalization, has significantly decreased on exchange platforms, according to reports. Since the creation of Ether, ETH tokens on exchanges have fallen to an all-time low.

Ether on exchanges reaches a record low
Santiment data shows that the supply of Ethereum on exchanges currently makes up 8.04% of the asset’s total supply. Since Genesis, this is the lowest level ever seen. The amount of altcoin available on exchanges usually affects the asset’s price. Since it validates the idea that there is less selling pressure on ETH, a decrease in supply is regarded as bullish.

The figure below shows that Santiment’s active addresses statistic indicates that there is a growth in active addresses on Ether. This lends credence to the recovery of ETH prices argument.

Even if ETH traders have been taking continuous profits since October 2023, Ethereum is still trading above $2,200. The Network Realized Profit/Loss chart displays whether traders are realizing wins or losses on their Ethereum trades.

The price of Ethereum may rise to $2,551, which is the 61.8% Fib level of the drop in ETH from its top of $3,582 in April of 2022 to its low of $883.42 in June of the same year. The chart below shows where resistance for the price of ether is located: $2,458 and $2,500.

A daily candlestick close below the $2,232 50% Fib line could refute the bullish Ethereum price hypothesis.

For the latest crypto news and updates, please keep visiting Cryptured and stay updated with the latest trends.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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