Ethereum is presently hovering around $2,200, experiencing relatively calm volatility over the last seven days. Recent data from Santiment sheds light on the prevailing sentiment among Ethereum whale addresses, as the total supply on exchanges has recently reached a new low. According to the on-chain analytics platform, more than 240,000 ETH have departed from the ten largest Ethereum exchange wallets in the past 24 hours.
Consequently, the cumulative ETH holdings on crypto exchanges have witnessed a substantial decrease from 8.03 million ETH to 7.79 million ETH within a single day, marking one of the most significant drops observed. Given the current ETH price of approximately $2,200, this translates to a reduction of over $528 million in the total value of ETH held in exchange balances.
Ethereum Exchange Reserves Experience a Sharp Decline
Ethereum has seen a 1.74% decrease in the last 24 hours and is presently testing its breakout level around $2,200, which appears to have transformed into a supportive level. Despite this, the significant decline in Ethereum balances on exchanges signals a bullish trend for ETH. The reduced availability of ETH on exchanges contributes to a diminished supply.
ETH whales have been actively acquiring more since the start of the month, anticipating an extended bullish market in the coming year. IntoTheBlock data reveals a substantial 98.52% surge in exchange outflow volume over the past 30 days. In just the past week, whales purchased over 100,000 ETH, amounting to $230 million.
This positive sentiment continued into the current week, witnessing a 240,000 ETH outflow from exchanges within 24 hours, resulting in a 2.99% reduction in coins held on exchanges. According to Santiment, only 8.07% of Ethereum’s total supply is currently residing on exchanges, marking the lowest level ever recorded.
ETH encountered difficulty surpassing the $2,250 price threshold, experiencing a dip to $2,120 in the late hours of December 19. As of the current update, ETH is trading at $2,208. The prevailing price action suggests that the cryptocurrency is still in the process of gaining solid traction among retail investors, undergoing a retest.
Crypto analyst Ali Martinez observes that Ethereum is oscillating within the breakout zone of an ascending triangle. If this consolidation persists, there is potential for a price range between $2,150 and $1,900 before a breakout towards a target of $3,500.
With an 82.67% increase in value this year, Ethereum’s outlook for 2024 remains optimistic. According to crypto analyst Altcoin Daily, the journey to $10,000 for ETH appears promising, contingent on Ethereum Spot ETFs serving as a significant catalyst for this anticipated price growth.
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Featured image sourced from Cointribune, chart data obtained from Tradingview.com.
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