Ethereum holdings on exchanges fall to a nine-year low, with big investors (whales) buying more. Analysts predict this trend could lead to a upcoming bull run, with ETH stabilising around $1,787 and potential gains towards $2,000-$2,200 if support levels hold.
Fast Summary: Ethereum’s supply on exchanges has plummeted to a nine-year low, triggering speculation of an incoming bull market. Current analysis shows big investors, referred to as “whales”, are accumulating Ethereum, which may lead to a significant price increase. With ETH’s value currently stabilising around $1,787, there’s a possibility for gains toward the $2,000-$2,200 range if certain support levels hold.
Ethereum Supply on Exchanges at Historic Low: Ethereum held on exchanges has reached its lowest level since 2016, now under 10%. According to the data from Glassnode, this decline indicates a shift towards self-custody assets and reduced pressure to sell. A blue line in their chart reveals a steady decrease in Ethereum balances on exchanges since mid-2020. This trend signifies that more Ethereum is being locked away in self-custody and cold storage for longer durations.
As the supply on exchanges dwindles, there’s less ETH available for immediate selling. This shrinking availability leads to greater difficulty for traders looking to offload their holdings quickly. Generally, when demand rises while supply stays tight, markets can experience higher volatility. Analysts believe such limited liquidity often lays the groundwork for potential price escalations when assets are consistently removed from trading platforms.
Whale Activity Supports Bullish Sentiment: Large investors, or whales, are ramping up their purchases of Ethereum, as suggested by recent data. On-chain details show one particular whale acquiring $3.1 million worth of ETH, while another high-value buy mirrors this accumulation trend. Analysts note that when major players in the market make such purchases, it typically indicates a belief in Ethereum’s upcoming value rise.
This growing belief is supported by the notion that fewer ETH being available for sale means selling pressure diminishes. The increasing acquisitions by these investors raise speculation about future supply busyness. Historical patterns during previous bull runs—similar to what we’re seeing now—often see increased holdings among whales, hinting at optimistic expectations ahead.
Market Cycle Points to Upcoming Impulsive Phase: Analyst CryptoProject6 observes that Ethereum follows distinct cyclic phases: corrective, recovery, and proactive or impulsive. Following last year’s corrective downturn, ETH seems to have transitioned through a recovery stage starting in 2023. Now signs suggest it might be approaching an impulsive phase, characterised by rapid price increases following prolonged stability.
Projections predict Ethereum could soar to $7,000 by 2025, with potential to hit between $7,000 and $10,000 by early 2026. Such analyses lean on historical performance, which frequented immense price spikes occurring during similar market conditions. Today’s trading scenario appears to parallel exchange supply patterns and the prevailing trends of institutional accumulation, hinting at the potential for Ethereum to prepare for its next growth phase.
Technical Indicators Support Upward Momentum for Ethereum: Observations from the 4-hour ETH/USDT chart denote that Ethereum may be closing out a recent decline, with prices bouncing from around $1,600 to $1,700. Currently, Ethereum hovers near $1,787 and seems to be starting a positive trend. Analysts contend that remaining above the $1,700 support threshold could facilitate a surge towards the $2,000-$2,200 range, offering solid prospects for further price enhancement.
Disclaimer: This article serves solely for informational purposes; it should not be construed as financial or investment advice. Neither the author nor individuals referenced take responsibility for any financial losses resulting from trading decisions made based on this material. Conduct thorough research before making financial commitments.
Olivia Stephanie, a passionate FinTech expert, delves deep into the dynamics of financial markets. Her keen interest in economics and blockchain technology drives her exploration of the ever-evolving cryptocurrency landscape.
