Ethereum stock market reserves fell to the lowest level of the last nine years. This shows that investors are tending to hide ETH long -term and that a “supply shock” may be experienced with the decrease in the supply. The decreasing supply and increasing demand can carry the price of Ethereum to new peaks.
Ethereum supply is exhausted: Can the price rise?
Ethereum reserves have reached the lowest point since July 2016, declining to 18.95 million in central exchanges. This decrease shows that investors take their ETHs out of the stock market and hide it in cold wallets and take long -term positions.
According to Nicolai Sondergaard from Nansen, the crypto analysis platform, this trend gives quite a “bull signal .. Since a similar trend is observed in Bitcoin, there may be a great contraction in the markets. Looking at historical data, a large amount of ETH withdrawn from the stock exchanges usually prepares the ground for price increases.
Critical levels for ETH price
The ETH price is currently traded at $ 2,710 and faces strong resistance between $ 2,750 and $ 2,800. If these levels are exceeded, a short leverage short position of $ 822 million is expected to be liquidated. This can allow the price to progress rapidly to levels of $ 3,000 or more.
However, the price of Ethereum has decreased by 3.67 %in the last year and has lost 19 %since the New Year. However, the decreasing supply and increasing demand trend indicates that the price can soon rise again.
Ethereum ETFs and Stinging Factor
Another important reason for Ethereum’s withdrawal from the stock exchanges is that investors keep their ETHs long -term to win Stinging Awards. Starting -backed Ethereum ETFs, which are expected to be approved in the near future, can even narrow the ETH supply on the market. Redstone’s COO Marcin Kazmierczak said, “If Stinging ETFs come into play, Ethereum’s circulating supply will decrease further, and this will create a big upward pressure on the price.” Consensys founder Joe Lubin says that it is a matter of time before the launch of Stinging -based ETFs.
The future of Ethereum will depend on the continuation of the supply from the stock exchanges and the approval of new investment instruments such as ETF. If the market responds to these positive developments, it may be a matter of time before the ETH price breaks the level of $ 3,000.
