Ethereum Exchange Supply Hits Lowest In History, ETH Rally to Continue?
Highlights
- Ethereum exchange supply drop indicates reduced selling pressure and an inclination toward long-term holding.
- With 58% gains over the last month, the ETH rally is supported by strong futures interest hitting $31.2 billion.
- Crypto analyst Crypto Patel highlighted a “Golden Cross” on Ethereum's 12-hour chart, suggesting strong bullish action ahead.
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.
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 Citing data from Glassnode, crypto analyst Ali Martinez explained that nearly 1 million ETH have been withdrawn from exchanges over the past month.
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.
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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