- ETH was only available in a total of 11%.
- Investors were less inclined to give up their ETH.
Do you want to buy? Ethereum [ETH] Not enough people selling on the market. It’s possible that you are not the only seller!
ETH liquid supply is decreasing
ETH could be the hottest entity in the crypto world right now. It has a promising start to 2024.
The king of altcoins isn’t having a problem with demand. The supply is.
AMBCrypto analysed Glassnode data and found that ETH exchange reserves had plummeted to new levels as this article was being written.
As of this point in time, only 11% (down from 15%) of the total stock was actively traded.
The downward trend continued into 2024 despite a 57% rise in the value of ETH year-to date (YTD). Continuing the downward path would worsen the current supply crisis.
Such shortages tend to boost prices over time, as long as demand is strong.
The obvious fact is that the supply fell throughout 2022-2023. ETH, however, still performed poorly due to uncertainty caused by bear markets.
But with the improving sentiment towards cryptocurrencies and ETH’s price, it is possible that ETH will continue to rise. own The pursuit of the second largest digital asset will only intensify as bullish catalysts such as spot ETFs become more prevalent.
Whales are busy stockpiling ETH
ETH seems to have a lot of support from the whales. They are well-known for owning a big chunk of ETH.
AMBCrypto has analyzed Santiment data and found that whale transactions valued at over $100k rose despite recent price drops.
This led to an increase in wallets containing 1,000 to 10,000 coin.
What is ETH and what can I expect?
AMBCrypto analyzed TradingView’s technical indicators to get a clearer picture of ETH’s market status.
It is the first since March that the Relative Strength Index has surpassed the neutral 50-line. Moves above 60 may consolidate bullish feelings and lead to a rise in the price of $4,000.
The On Balance Volume, or OBV, did not reach higher peaks, like the price. It moved sideways over the last 10 day. The uptrend could be stalling.
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A further risk was that the Moving Average Convergence Divergence, or MACD for short, could fall below the line of signal in the next A few days. A similar event could strengthen the bearish narrative.
A move above zero can also lead to further gains in price.
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Source: ambcrypto.com