The price of ethereum, like the rest of the crypto market, has fallen sharply in the past month. Yet an unexpected bright spot appears on the horizon: the supply of ethereum on crypto exchanges has never been as low as it is now. That is why analysts dare to predict price increases in the short term again.
Ethereum supply on exchanges drops to all-time low #
Since the launch of the crypto network in 2015, the available supply of ethereum has not been this small. According to data from Glassnode, crypto exchanges now hold less than 9 percent of the total circulating supply. On Thursday, the supply even briefly dropped to 8.7 percent, an absolute low. The supply is at “a level we have never seen before,” says crypto analyst Milk Road.
That is remarkably low, even compared to bitcoin. Crypto exchanges currently hold 14.8 percent of the total amount of circulating bitcoin.
A declining supply is usually seen as a positive sign. As soon as demand increases, this in combination with a low supply can push the price up.
What this does to the price of ethereum #
Milk Road also expects that the shrinking supply will lead to a price increase, even despite the current heavy sentiment. For now, however, there is little to notice and ethereum is mainly fluctuating. At the time of writing, the coin is worth $3,037.
The price of ethereum has risen by 1 percent in the past week and thus remained virtually stable. Compared to 24 hours ago, the price has remained exactly the same. In the past 30 days, however, the coin has fallen by more than 9 percent.
Buyers appear on the ethereum market #
Although the price shows little momentum, there are positive signals for ethereum. Buyers seem to be gaining ground, analyst Sykodelic shares on X.
The analyst shows that the On-Balance Volume (OBV) indicator has broken through a resistance level. This is an indicator that measures buying and selling pressure by comparing trading volume and price movements.
“[The breakthrough] is a sign of buying power and usually the price follows.” “I think we will see a peak before a real price correction takes place,” says the analyst.
