ETH on exchanges drops to near a decade low, is the price about to rise sharply?

The supply of Ethereum (ETH) on exchanges has decreased to its lowest level since November 2015, prompting some analysts to predict that the price will rise sharply despite recent bearish sentiment.

"The available supply of ETH on exchanges has decreased to 8.97 million, the lowest in nearly 10 years as of November 2015, according to the analysis platform Santiment."

! ETH ETH supply on exchanges hits lowest level since November 2015 | Source: SantimentSantiment said ETH has been rapidly exiting exchanges, with balances now 16.4% lower than at the end of January. This suggests that investors are moving ETH into cold storage wallets for long-term holding, so it is likely that the price will increase in the future.

The significant decrease in ETH supply on exchanges signals a potential price surge soon, often referred to as a "supply shock." However, a price increase will only occur if demand remains strong or increases beyond the reduced supply.

Recently, this has been witnessed in Bitcoin. On Jan. 13, Bitcoin reserves across all exchanges fell to 2.35 million BTC, hitting a nearly 7-year low, last recorded in June 2018. Just a week later, the price of Bitcoin skyrocketed to a new high of $109,000 during the inauguration of U.S. President Donald Trump.

Some traders and analysts predict a similar scenario for ETH. Crypto General trader shared:

"It's just a matter of time before a large supply shock occurs."

Commentator Ted stated that with the supply of ETH on exchanges gradually decreasing day by day, "buyers will soon compete, leading to a sharp price increase."

Meanwhile, trader Naber notes that the largest ETH accumulation phase is taking place, and this could bring prices ranging from $8,000 to $10,000. Even at the lower end of $8,000, ETH would increase by 64% from its all-time high of $4,878, reached in November 2021.

While the decreasing supply is bringing hope to traders about ETH, other recent signals have cast a bearish shadow over this asset.

The performance of ETH against Bitcoin is at its lowest in 5 years. Daan Crypto Trades stated in a post on March 19 that "there is little chance of the price reaching near its highs anytime soon."

ETH price chart 4 hours | Source: TradingViewETH is currently trading at $1,971, down 26% over the past month. Meanwhile, Ethereum spot ETFs have recorded outflows for 12 consecutive days totaling $370.6 million, according to Farside's data.

"This is a brutal downtrend," Daan Crypto Trades added.

Scott Melker, also known as "The Wolf of All Streets", said:

"Either ETH will bounce back here and this is the generational bottom, or it's the end."

Disclaimer:*** The article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions

• The Hedera bull faction (HBAR) may lose control when the price drops below $0.20
• The price outlook for ETH is bearish as Ethereum DEX trading volume decreases by 34% in a week.
• Accumulating ETH in the long term will be interrupted if the price slips below $1,900.

Minh Anh

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