The supply of Ethereum on exchanges has been steadily decreasing since the FTX crash occurred in 2022. This decline is a result of growing mistrust in centralized exchanges, leading investors to choose self-custody of their tokens. The continuous drop in Ethereum held on exchanges has now reached its lowest point since its inception.
Ethereum Supply on Exchanges Drops to Genesis Levels
Upon the launch of the Ethereum network in 2015, the amount of ETH available on exchanges was minimal due to its newness in the market. As the digital asset gained widespread acceptance and began trading on numerous exchanges, the exchange balances gradually increased over the following years.
However, there has been a shift in investor behavior, with more crypto investors opting to hold their ETH in private wallets instead of leaving them on exchanges. As a result, only 8.41% of the total circulating supply of ETH is currently available on exchanges.
According to on-chain data tracker Santiment, this is the lowest ETH exchange balance since Genesis in 2015. “Prices crossed $1,850 for the first time since August 15th, and the now 8.41% of $ETH supply on exchanges is the lowest since #genesis in 2015. Whale transactions also hit a 6-month high,” Santiment noted in an X post.
The trend of moving away from exchanges aligns with the rapid increase in Ethereum’s price, indicating that accumulation by holders has significantly contributed to the asset’s recovery. If exchange balances continue to decline, indicating less willingness to sell ETH and reduced selling pressure, the value of Ethereum could continue to surge.
3 Price Targets for Ethereum Bulls
With Ethereum bulls successfully surpassing the $1,700 resistance level, their focus now shifts to higher price points. The next significant resistance lies at $1,850, as demonstrated when the bulls were rejected from that level on Tuesday. Clearing the $1,850 hurdle is the first step in establishing a stronger bull trend.
The $1,920 level is the next target, where significant resistance is expected to occur. This will be one of the last obstacles for the bears to prevent a full-blown bull rally, and the bulls will likely face substantial resistance at this level.
Lastly, reaching the $2,000 mark is a crucial goal for Ethereum bulls. Throughout the year, it has proven to be a significant price level that could signify an end to the downtrend. To achieve this, ETH bulls will need to reclaim this level from the bears and transform it into a support level.
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