Ethereum on-chain data shows that the ETH exchange supply has hit its lowest in history, highlighting reduced selling pressure and long-term holding positions. With this, ETH price has pumped 7% today, shooting past $2,550 levels, with its market cap crossing $300 billion. The overall market sentiment for ETH has turned extremely bullish, with 58% gains over the past month.
Ethereum Exchange Supply Hits Lowest in 10 Years
Blockchain analytics firm Santiment has shared an important statistic, noting that the Ethereum blockchain now has less than 4.9% of its total supply currently held on exchanges. This is the lowest percentage of ETH on exchanges, ever since its inception, over a decade.
Furthermore, Santiment also stated that over the past decade, the ETH exchange-held supply has decreased by a staggering 15.3 million ETH. This highlights a growing preference among investors for long-term holding and decentralized storage options.
Source: Santiment
Amid 60% gains over the past month, the ETH exchange supply during this period has drained pretty quickly. Citing data from Glassnode, crypto analyst Ali Martinez explained that nearly 1 million ETH have been withdrawn from exchanges over the past month.
Source: Ali Martinez
The reduction in exchange-held ETH often indicates a decline in potential selling pressure. This would also ensure greater ETH price stability and long-term bullish sentiment. Popular market veterans like Arthur Hayes believe that Ethereum will lead the altcoin season this summer.
ETH Rally To Continue From Here?
After taking a dip under $2,400, ETH price is once again showing major strength, up by 8.83% in the last 24 hours, and currently trading at $2,573 with a market cap of $310 billion. As per the Coinglass data, the Ethereum futures open interest is up 7% to more than $31.24 billion, underscoring a strong bullish sentiment among traders. On the other hand, the 24-hour liquidations have soared to $91.6 million, of which $59.6 million is in short liquidations.
Popular analyst Crypto Patel also highlighted the formation of a “Golden-Cross” pattern on a 12-hour ETH chart. A Golden Cross forms when a short-term moving average crosses above a long-term moving average. As a result, the analyst’s projected ETH price target is currently between $3,800 and $5,000 or higher.
Source: Crypto Patel
If the ETH price holds above the crucial resistance of $2,500, the bulls can continue with the ETH price rally to $3,000 and beyond in the near term.
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Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
