Ethereum Investors Hoard ETH: Could This Trigger a Price Surge?
Despite the recent gloomy sentiment, several analysts have predicted a significant price rebound as Ether’s supply on cryptocurrency exchanges has fallen to its lowest level since November 2015.
Ethereum’s holders have now brought the available supply on exchanges down to 8.97M, the lowest amount in nearly 10 years (November, 2015),
crypto analytics platform Santiment
According to Santiment, ETH has been moving quickly out of cryptocurrency exchanges, and balances are currently 16.4% lower than they were at the end of January. This implies that investors may have greater faith in Ether’s future price growth if they move their holdings into cold storage wallets for long-term holding.
Ethereum Supply Crisis? ETH Reserves Hit Historic Low!
A notable drop in ETH supply across cryptocurrency exchanges may indicate an impending supply shock or a sharp increase in price. But only if demand stays high or rises to surpass the decreased supply will there be a boom.
It was recently observed in Bitcoin as well. All cryptocurrency exchanges’ reserves of Bitcoin fell to 2.35 million BTC on January 13, marking a nearly seven-year low last recorded in June 2018. A week later, during US President Donald Trump’s inauguration, Bitcoin shot up to a record high of $109,000. For Ether, some cryptocurrency researchers and traders predict a similar outcome.
Crypto Experts See ETH Supply Crisis: Is a Massive Price Surge Next?
Crypto General, a cryptocurrency trader, stated that the major supply shock is only a matter of time. In a March 19 X post, cryptocurrency analyst Ted predicted that purchasers would soon fight and start bidding wars as the quantity of ETH on cryptocurrency exchanges is running out daily.
On the same day, cryptocurrency trader Naber stated in an X post that the biggest ETH accumulation is occurring and that it might cause Ether to hit the $8,000–$10,000 price range. Ether would be up 64% from its peak of $4,878, which was attained in November 2021, even at the lower end of $8,000 prices. Although the decrease in supply is encouraging cryptocurrency traders for ETH, other indicators have recently raised concerns about the commodity.
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