Ethereum is making headlines, and not just for its price. Recent data reveals a massive shift in how people are holding their ETH.
A Record Low in Exchange Supply
According to Santiment, the amount of Ethereum held on exchanges has hit an all-time low – less than 4.9%! This is unprecedented in Ethereum’s ten-year history. This is huge because it suggests a big change in how investors are behaving. It’s generally seen as a bullish signal for the price.
ETH is currently trading around $2,530, a solid recovery from its April low of around $1,385. While the price has seen some ups and downs recently (peaking near $2,730 before a slight dip), the overall feeling in the market is positive.
Why is This Happening?
This record low exchange supply is likely due to a few factors:
- Increased Staking:
Since Ethereum 2.0 launched, more and more people are staking their ETH, meaning it’s locked up and unavailable for trading on exchanges. - Whale Accumulation: Big investors (“whales”) have been buying up huge amounts of ETH recently – over 450,000 ETH in the last month alone, according to CryptoQuant. This is happening at the same time exchange balances are shrinking.
This shrinking supply means less ETH is available to sell, reducing the potential for big price drops.
Predictions and Price Targets
The positive on-chain data has even caught the attention of prominent crypto analyst Raoul Pal, who predicts a huge price surge for ETH. He believes it could “explode” as part of an altcoin season.
Technically, ETH recently formed a “Golden Cross” on its 12-hour chart, a bullish signal. A breakout could push the price towards $3,000 and even $4,000, especially if Bitcoin continues its upward momentum. All eyes are on the $2,800 resistance level.
