What’s Next for Ethereum Price as Exchange Supply Hits 10-Year Low?

Key Insights:

• Ethereum price eyes breakout as ETH exchange supply dropped to an all-time low of 4.9%.
• Over 1 million ETH were withdrawn from exchanges in a month, showing strong long-term holding sentiment.
• Analyst notes a Golden Cross in the 12-hr chart.

Ethereum (ETH) exchange supply has reached its lowest point in over a decade, showing that traders are not selling much. Consequently, Ethereum price reached over $2,570 after more than one million coins moved from exchanges in the last month.

Ethereum Price Eyes Rally As Exchange Supply Drops Below 5%

The latest on-chain data hints at a potential Ethereum price rally ahead. As noted by Santiment, only about 4.9% of all ETH is currently kept on centralized trading platforms, marking the lowest amount in its history.

Analysts consider this trend to be reflective of a growing preference for off-exchange storage and long-term investment strategies.

During a time when the Ethereum price was going up, reserves on exchanges were sharply reduced. Over the past 30 days, the top crypto rose by 58%.

Crypto analyst Ali Martinez has pointed out that about 1 million ETH were taken off exchanges in the past month. The move away from exchanges is often considered to lessen short-term selling activity.

Ethereum Price Surged Above $2,500 With Bullish Momentum

Over the last 24 hours, Ethereum price rallied over 4% to $2,520. At that point, the top altcoin market capitalization reached $310 billion. Following a brief fall below $2,400, ETH price increased by more than 50% in the last seven days.

Additionally, market sentiment turned positive when trading volume and derivatives interest rose sharply. According to Coinglass, there was a 7% rise in open interest in Ethereum futures, reaching over $31.24 billion.

Meanwhile, the market saw liquidations totaling $91.6 million, where $59.6 million was from buyers. These liquidations boosted Ethereum price rise. A rise in open interest is usually an indication that traders expect the current trend to last.

Technical Indicators Signal Extended Rally For Ethereum Price

According to technical analysts, there is a bullish pattern appearing on Ethereum price’s 12-hour chart. Analyst Crypto Patel has reported that a Golden Cross has materialized. This happens when the short-term average rises above the longer-term average.

In Ethereum case, this development has added to growing trader optimism.

Notably, Golden Cross patterns are often followed by extended rallies when proven by strong volume and rising prices. Since Ethereum price has managed to break through $2,500, this could mean its upside potential is strong.

The analyst set price targets of between $3,800 and $5,000, assuming the current gains hold.

Another crypto analyst, Crypto Fella, revealed an Ethereum price chart that exhibited a falling wedge, often marking a bullish reversal. The altcoin price was near the bottom line of the range, indicating a possible breakout.

Should ETH price move past the upper boundary of the wedge, it could reach the target area near $2,800. Due to the recent bounce and the longer-term pattern of slightly higher lows, the chart indicated the wedge may turn bullish. The pattern signals that buyers are gaining strength.

Long-Term Holding Trends and Market Sentiment

More so, the fact that ETH is leaving exchanges indicates that investors are confident about the future. Since Ether was launched, more than 15.3 million Ethereum have moved out of exchanges. In the last few months, more investors have turned away from relying on centralized platforms.

With Ethereum price recent gains, analysts are looking at how those gains may affect the overall altcoin market. Arthur Hayes, an active industry participant, stated that Ethereum could guide the market during the next rally. This could bring about increased trading activity between altcoins.

Further supporting a bullish outlook, recent analysis showed Ethereum price forming a golden cross on its 12-hour chart, signs of upward movement. The analysis further revealed that Ethereum broke out of a falling triangle and settled above $2,400.

With support at $2,233 and resistance at $2,750 and $3,000, the crypto is eyeing $3,500 as the next target. Positive funding rates also reflected sustained trader confidence and growing interest in long positions.