The supply of ethereum on exchanges has been steadily declining since the FTX crash occurred in 2022. This was caused by a growing distrust towards centralized exchanges and as a result, investors opted to self-custody their tokens. The constant decline has seen ethereum held on exchanges fall to the lowest point since its inception.
eth available on exchanges drops to Genesis levels
When the ethereum network was first launched in 2015, the eth available on exchanges was very low due to it being a new player. Exchange balances would rise steadily in the coming years as the digital asset gained widespread acceptance and began trading on countless exchanges.
However, there has been a change in trend and cryptocurrency investors are now choosing to hold their eth in private wallets rather than leaving them on exchanges. The result of this is that there is now only 8.41% of the total circulating supply of eth available on exchanges.
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Source: Santiment on X
On-chain data tracker Santiment notes that this is the lowest level ethereum exchange balances have been since Genesis in 2015. “Prices crossed $1,850 for the first time since August 15, and now 8, 41% of $eth supply on exchanges is the lowest. since #genesis in 2015. Whale transactions also hit a 6-month high,” Santiment saying in a publication
The move away from exchanges coincides with a rapid rise in price, suggesting that holder accumulation has played a major role in the digital asset’s recovery. And if exchange balances continue to fall, meaning less willingness to sell eth and less selling pressure, the value could continue to skyrocket.
<img decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/lkwHmSiS/" alt="Tradingview.com ethereum Price Chart” width=”2650″ height=”1758″/>
eth price gears up to retest $1,800 | Source: ETHUSD on Tradingview.com
3 Price Targets for ethereum Bulls
Now that ethereum bulls have broken through the $1,700 resistance, they have begun to turn their attention to much higher prices. The next significant resistance lies at $1,850, as demonstrated on Tuesday when the bulls were rejected from that level. Therefore, $1,850 is the first very clear trading price in the attempt to establish a stronger uptrend.
Next on the list is the $1,920 level, where a major hurdle for eth price is expected to occur. This will be one of the bears’ last defenses to prevent a full-blown bullish rally and the bulls will surely encounter a lot of resistance at this level.
Last but not least is the $2,000 mark that has eluded the bulls for most of this year. This is arguably the most significant price level for ethereum right now and could signal the end of the bleeding. Therefore, eth bulls will have to reclaim this level from the bears and turn it into support.
