News

Ethereum Shorts Building Up, ETH Exchange Supply Rises

The sharply surging supply of Ethereum at the exchanges is a sign of caution and it could fuel further sell-off in the market.
Published by
Ethereum Shorts Building Up, ETH Exchange Supply Rises

Amid the broader market crash, the world’s second-largest cryptocurrency Ethereum (ETH) has entered a major correction. After last week’s fall, the ETH price has been hovering around $2,000 levels.

On-chain data provider Santiment provides us some glimpses into what could be the next price action for Ethereum (ETH). The data provider noted that on an 8-hour chart, there have been heavy shorts building up for Ethereum at $2,000.

Courtesy: Santiment

However, Santiment adds that this usually doesn’t end well with the shorter and a short squeeze is likely to follow. Thus, we might see a bounce back in the price of Ethereum.

But another concerning factor is the ETH exchange supply. Santiment notes:

While we saw a nice drop in supply on exchanges for the past year or so, May 1st 2022 saw a huge increase in supply on exchanges as folks rushed to exit their positions, which is clearly reflected on the price itself.

Thus, any further increase in the exchange supply would fuel an additional drop. This suggests that investors are in a state of panic and have completely given up. Although the situation looks scary, this could be a good time to build up fresh positions.

Courtesy: Santiment

Some Positive Indicators for Ethereum

Santiment cites the 90-day MVRV (Market-Value-to-Realized-Value) Ratio for Ethereum. It adds that the MVRV “measures the mid-term profit/loss of holders is showing that we are almost into the opportunity zone, which historically saw a local bottom being developed with a decent R/R”.

On the other hand, global macros will continue to play a big role in deciding the crypto market momentum. Amid persisting inflation, the U.S. equity market and the S&P 500 are showing signs of weakness amid the fear of aggressive interest rate hikes by the Federal Reserve. At the same time, the fears of the United States going into a recession are high.

Also Read : Ethereum Price Prediction 2022 , A Supper Cycle for Eth Price  ahead of the Merge 

Advertisement

Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial 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. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Breaking: Trump Pardons Binance’s Changpeng “CZ” Zhao, BNB Spikes

U.S. President Donald Trump has reportedly pardoned Binance founder Changpeng "CZ" Zhao for his conviction…

October 23, 2025
  • News

Peter Schiff Challenges Binance Founder CZ to Debate as Bitcoin Vs. Gold Rivalry Heats Up

Bitcoin critic and renowned economist Peter Schiff has challenged Binance co-founder Changpeng "CZ" Zhao to…

October 23, 2025
  • News

Robinhood Lists HYPE As Hyperliquid Flips CZ Backed Aster In Perp DEX Volume

Crypto exchange Robinhood has listed Hyperliquid's native token HYPE for its U.S. clients. This comes…

October 23, 2025
  • News

Expert Warns More Crypto Bloodbath Ahead of CPI Data Tomorrow

The U.S. Bureau of Labor Statistics (BLS) will release the Consumer Price Index (CPI) data…

October 23, 2025
  • Bitcoin News
  • News

US President Promises Deal With China on Everything As ‘Trump Insider’ Begins To Close Bitcoin Shorts- Is A BTC Recovery Ahead?

The “Trump insider whale” has begun closing its Bitcoin short positions just as the U.S.…

October 23, 2025
  • News

Just-In: Changpeng “CZ” Zhao Counters Peter Schiff, Says “Tokenizing Gold Is Not On-Chain Gold”

Binance founder Changpeng "CZ" Zhao debunked economist Peter Schiff's views on tokenizing gold. CZ claimed…

October 23, 2025