ETH Bull Thesis Grows as Exchange Balance Hits Record Low
- Ethereum (ETH) Supply at exchanges has dropped to an all-time low.
- The decline points to increasing bullish sentiments.
- Experts have recently sounded increasingly optimistic about ETH’s price going into 2024.
In 2023, the crypto market winds have shifted with growing bull currents. Amid the growing positivity, Ethereum (ETH) , the second-largest crypto asset by market cap, has made steady gains . While some have argued that ETH has yet to show much momentum, its fundamentals continue to show significant promise. In the latest instance, the asset’s balance on exchanges has dropped to record lows, strengthening bullish sentiments.
Large Wallets Take Ethereum (ETH) Off Exchanges
On Tuesday, December 19, crypto analytics firm Santiment Feed highlighted that large exchange wallets were taking ETH off exchanges. The firm noted that these wallets had withdrawn a staggering 240k ETH (worth over $530 million at the time of writing) from exchanges in 24 hours, leading to a 3% decline in overall ETH balances on exchanges. With the decline, ETH supply on exchanges is now at an all-time low of 7.79 million.
The significant decline in ETH supply on exchanges supports the asset’s bullish tailwinds. Investors typically move assets to exchanges when they want to sell and move them off when they believe they stand to gain from holding. The data suggests that holders are significantly optimistic about the asset’s price at current levels. At the same time, it also suggests that ETH is facing less selling pressure than ever before.
ETH is trading at $2,215.10, representing a 1.54% decline in the past 24 hours, according to CoinMarketCap data at the time of writing. According to prominent crypto analyst Ali Martinez, the asset could chart a course to $3,500.
Meanwhile, several analysts, including JP Morgan, have predicted that ETH will outperform Bitcoin (BTC) in 2024.
On the Flipside
- ETH is still trading 54.7% below its all-time high of $4,878.26.
- On Monday, December 18, veteran trader Peter Brandt suggested that ETH’s price could drop to $650.
Why This Matters
The decline in ETH supply on exchanges suggests that the asset faces significantly low selling pressure, supporting hopes of a continued price rally.
Read this for more on ETH:
Ethereum (ETH) Whales Eye Higher Prices with $230M Spree
Is BlackRock’s Bitcoin ETF approval closer? Read more:
BlackRock Compromises on Bitcoin ETF Market Manipulation Row
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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