Ethereum’s supply on centralized exchanges (CEXes) has hit a record low. Recently, 4.1 million ETH were withdrawn from these platforms in just ten days. Now, only 12 million Ethereum, or 10% of its total supply, is on CEXes—the lowest since 2016.
“Only 12 Mio. #Ethereum or 10% of Ether supply remains on centralized exchanges after investors withdrew 4.1 Mio. #ETH from CEXes in 10 days. ETH on CEXes is at its lowest level since 2016! Nobody has yet fully grasped how bullish this is in combination with the ETF launch,” said crypto analyst Leon Waidmann in a Tweet.
A chart shows Ethereum’s supply on exchanges has steadily declined over the years, while ETH’s price has generally risen. This trend suggests investors are moving their ETH to private wallets, indicating long-term holding and confidence in Ethereum’s future.
This shift coincides with positive sentiment around the launch of Ethereum-based ETFs, which are expected to boost institutional interest and investment in Ethereum. The combination of lower exchange balances and the ETF launch suggests a promising market outlook for Ethereum, as reduced supply on exchanges typically leads to less selling pressure and potential price increases.
Ethereum’s Price Analysis
Currently trading at $3,425, Ethereum has arrived at a critical support zone following a brief consolidation and correction phase. This zone, ranging from $3285 to $3420, aligns with key Fibonacci levels and the significant 100-day moving average around $3400, underscoring its importance.
A fierce battle between buyers and sellers is anticipated at this critical price range, likely resulting in increased market volatility and possible liquidations. The outcome will significantly influence Ethereum’s next trend. Should sellers dominate and break this support, a drop towards the 200-day moving average at $2996 is expected.
On the 4-hour chart, Ethereum has formed a head and shoulders pattern, which led to a break below the neckline, increasing bearish momentum. A descending flag pattern has emerged, indicating the potential for a bullish reversal if the upper boundary is breached.
Currently, Ethereum’s price hovers around this decisive support, with a breakdown signaling a move towards $2.9K, while a reversal could target $3.6K.
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