Ethereum’s Circulating Supply on Exchanges Declining
There are several on-chain indicators suggesting that Ethereum (ETH) could experience a rally soon. One important indicator to monitor is the circulating supply of ETH on centralized exchanges (CEXs), as it provides insights into potential selling pressure. Currently, the balance of ETH on CEXs has reached its lowest level since May 2018, dropping from 18.48 million ETH to 14.56 million ETH since the beginning of 2023. This reduction in supply can alleviate selling pressure on platforms like Binance and Coinbase, potentially leading to a significant increase in the price of Ethereum if demand continues to rise.
ETH Held Outside of Exchanges
About 115.88 million ETH are currently held outside of exchanges, with approximately 27.32 million staked on the proof-of-stake network. In the past year, more than 13 million ETH have been taken out of circulation and placed in private wallets or staking platforms. Interestingly, despite this decrease in circulating supply, the price of Ethereum remains relatively stable compared to October 2022. However, whether the price reaches $2,000 by the end of the year depends on factors such as the Federal Reserve’s monetary policy and SEC approval for a Bitcoin spot ETF in the US.
Short-Term Outlook and Price Predictions
While on-chain data is useful for medium-term predictions, it may not accurately reflect short-term price movements. Currently, some traders are shorting ETH due to concerns about bearish patterns forming in weekly candles. One trader predicts a potential bounce in the price of Ethereum but expects a dump if the $1,565 level is breached, leading to a range between $1,440 and $1,370 for ETH.
Hot Take: Ethereum’s Future Price Depends on External Factors
The decline in Ethereum’s circulating supply on exchanges suggests a potential bullish breakout for its price. However, the achievement of a $2,000 mark by the end of the year relies on factors like the Federal Reserve’s monetary policy and SEC approval for a Bitcoin spot ETF. While on-chain data provides insights into medium-term predictions, short-term movements can be influenced by market sentiment and technical patterns. Traders should closely monitor key levels and indicators to make informed decisions. Overall, Ethereum’s future price hinges on external events and market dynamics.
By
By
By
By
By
By