ethereum recently surpassed the $2,000 price level again in the last 24 hours, as ethereum spot ETF filings in the US begin to pile up. New on-chain data has shown clearer sentiment among eth investors and it appears many are preparing for the long haul.
Data shows that the amount of ethereum held on exchanges has fallen since the middle of last week to the lowest levels since 2018. That means fewer people are selling their ethereum and more are holding or staking it.
ethereum exchange supply plummets
Although ethereum is still down 2.57% over the past seven days, the cryptocurrency is now trading above $2,000 after breaking the barrier on Monday, November 21. The recent surge would be the third time ethereum crossed the price level this month, as it still seeks to maintain a sustained price increase.
The recent spikes can be attributed to applications of ethereum-spot-etf/” rel=”nofollow”>ethereum Spot ETFs Accumulate before the US SEC. BlackRock, in particular, joined the ethereum ETF spot race on November 15, sparking a price surge that led eth to surpass the $2,000 mark for the second time this month.
It would appear that investors reacted to BlackRock’s eth presentation with the same sentiment as they did in response to the investment company’s bitcoin spot presentation. CryptoQuant’s exchange reserves metric indicates that investor sentiment began to change around this period, as investors began withdrawing their assets from exchanges and storing them in cold storage immediately following the news.
According to the metric, the amount of eth deposited on crypto exchanges amounted to 14.5 million as of November 15. However, this figure dropped by 152,583 eth in the following days to reach 14.3 million on November 20.
<img decoding="async" class="alignnone size-medium wp-image-561719 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2023/11/ethereum-15.png?w=460&resize=460%2C314" alt="ethereum" width="460" height="314" srcset="https://www.newsbtc.com/wp-content/uploads/2023/11/ethereum-15.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2023/11/ethereum-15.png?w=460&resize=460%2C314 460w" sizes="(max-width: 460px) 100vw, 460px" loading="lazy" data-recalc-dims="1"/>Source: CryptoQuant
IntoTheBlock’s net exchange flow reveals a similar sentiment. Network flow calculates the number of tokens entering exchanges minus tokens leaving exchanges. According to the metric, exchanges have had around 228,450 more eth in outflows than inflows since November 15.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-561720 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2023/11/ethereum-1-1.png?w=460&resize=460%2C306" alt="ethereum 1" width="460" height="306" srcset="https://www.newsbtc.com/wp-content/uploads/2023/11/ethereum-1-1.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2023/11/ethereum-1-1.png?w=460&resize=460%2C306 460w" sizes="(max-width: 460px) 100vw, 460px" data-recalc-dims="1"/>Source: IntoTheBlock
What to expect from eth price action in the coming months
Falling currency reserves reduce the amount of eth available for trading, thus increasing scarcity. Data from Cryptoquant and IntoTheBlock indicate that ethereum could be preparing for a price surge driven by growing scarcity.
ethereum is trading at $2,013 at the time of writing. We have already seen cryptocurrencies rise by 67% from $1200 at the beginning of the year, and many Analysts expect this trend to continue. if the supply is reduced. According to crypto analyst Tony The Bull, ethereum could cross $10,000 very soon if a bullish scenario develops.
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/75kESPry/" alt="Tradingview.com ethereum Price Chart (eth Exchange Balances)” width=”2650″ height=”1696″/>
eth price holds $2,000 | Source: ETHUSD on Tradingview.com
Featured image from Exame, chart from Tradingview.com
