ETH Mega Rally Ahead? Ether Exchange Balances Hit Near-Decade Low
Ether (ETH) balances on cryptocurrency exchanges have dropped to their lowest levels since November 2015, prompting speculation among analysts and traders about a potential price rally.
Ether Supply on Exchanges Hits Lowest Level Since 2015
According to crypto analytics platform Santiment, the amount of ETH held on exchanges has fallen to just 8.97 million coins, marking the lowest point in nearly a decade. This represents a 16.4% decline since the end of January, suggesting investors are increasingly moving their ETH into cold storage wallets for long-term holding.
Analysts Predict Potential “Supply Shock”
The significant reduction in ETH available on exchanges could lead to a “supply shock,” where limited supply combined with steady or increasing demand drives prices upward. A similar scenario recently occurred with Bitcoin (BTC), which surged to new highs after exchange reserves hit multi-year lows.
- Crypto trader Crypto General believes a major ETH supply shock is imminent.
- Crypto commentator Ted anticipates increased competition among buyers, potentially sparking bidding wars.
- Trader Naber predicts ETH could reach between $8,000 and $10,000, significantly surpassing its previous all-time high of $4,878.
Bearish Signals Persist Despite Supply Decline
Despite optimism around declining exchange balances, Ether faces bearish indicators:
- ETH’s performance against Bitcoin is at its lowest in five years.
- ETH price has dropped 26% over the past month, currently trading around $1,971.
- Spot Ether ETFs have experienced 12 consecutive days of outflows totaling $370.6 million.
Analysts Divided on ETH’s Future
Crypto analyst Scott Melker (“The Wolf of All Streets”) summarized the uncertainty, stating, “Either Ethereum bounces here and this is a generational bottom, or it’s over.”
Quick Summary
- ETH balances on exchanges at lowest since 2015.
- Potential “supply shock” could trigger price rally.
- Bearish signals remain, including poor performance against BTC and ETF outflows.
- Analysts divided on ETH’s near-term outlook.
Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
