Ethereum’s price is inching up, exceeding $3,100—a small victory after a week of dips. While this isn’t a huge jump, it’s got some analysts buzzing. They’re looking at some key numbers to figure out what’s next for ETH.
Ethereum’s Exchange Reserves Are Drying Up
One big thing: Ethereum reserves on exchanges are at multi-year lows. This means fewer ETH are sitting on exchanges ready to be traded. Think of it like this: less supply available usually means higher prices.
This trend started in late 2021. People started pulling their ETH off exchanges, likely to hold onto it long-term. This happened during the 2017-2018 and 2020-2021 bull markets too, but the current low is significant. The lower the reserves, the more bullish some analysts become.
What the Analysts Say
The low reserves have some analysts predicting a bullish future for Ethereum. One analyst, Crypto Caesar, thinks Ethereum is undervalued and could hit new all-time highs.
However, not everyone is singing from the same hymn sheet. Another analyst, Anup Dhungana, points out that Ethereum’s performance compared to Bitcoin isn’t as strong. He suggests a key support level for ETH/BTC (the ratio of Ethereum to Bitcoin) is between 0.028 and 0.026. A bounce from there could signal a broader upswing for Ethereum and other altcoins.
In short, while the price action is mixed, the dwindling supply of Ethereum on exchanges is fueling speculation of a potential bull run. Whether that happens remains to be seen, but it’s certainly a factor to keep an eye on.
