Ethereum exchange supply hits an all-time low of below 4.9% – will the price break $3,000 soon?

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Ethereum exchange supply hits an all-time low of below 4.9% – will the price break ,000 soon?

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According to Analytics Platform Santiment’s chain data, Ethereum’s exchange supply has dropped to an all-time low of less than 4.9%. This marks the lowest level of its record of more than 10 years and highlights a huge change in investor behavior. This is the main indicator of the upward space of Ethereum, especially the sentiment around cryptocurrencies Becoming more and more optimistic.

Ethereum communication hit rate record low

Ethereum (ETH) is currently trading at about $2,530, with its undervalued April around $1,385. It is worth noting that ETH’s price action has been Significant fluctuations. After reaching its peak of about $2,730, Resistance to prices and dip below $2,600. Despite this callback, overall Market sentiment remains optimistic.

As Ethereum’s price action goes back and forth, on-chain data shows a downward trend in ETH tokens that can be traded on crypto exchanges. For now, the chain Data from Santiment It shows that only 4.893% of ETH is now held on the trading platform, a milestone that has never been seen in Ethereum’s more than 10 years of history. Interestingly, over 15.3 million ETHs have been withdrawn from exchanges in the last five years alone.

This historic low can be partly attributed to the rise in ETH shares over the past five years, especially since the Ethereum 2.0 upgrade began. The side effects of this situation have been ongoing liquidity to decline. However, this decline also limits the amount of ETH available for spot sales, thus reducing the selling pressure that typically drops sharply during market corrections.

On-chain data from encrypted amounts Support this tightening supply narrativeindicating that in the last month alone, Whale Wallets holding 10,000 to 100,000 ETH accumulated over 450,000 ETH. These Large-scale acquisition Come when the exchange balance is reduced. Charts from CryptoQuant show that Ethereum prices have steadily risen since April 7.

Raoul Pal predicts ETH price will explode

Raoul Pal, a well-known macro investor and crypto analyst, responded to optimistic data on the chain. exist Recent interviews, Pal talked about the explosion potential of Ethereum, saying: “I think ETH will shock people who may be moving forward. It will explode.” His view is based on The entry of Altcoin season.

For now, everyone’s eyes are on the $2,800 resistor. Technical analysis shows that the Golden Cross has Recently confirmed On the 12-hour chart of ETH. This technical form of interference may be opened $3,000 and $4,000, Especially if Bitcoin maintains its current momentum On the way to a new history More than $108,800.

Featured images from Adobe Stock, charts from TradingView.com

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