Ether’s supply on crypto exchanges has plummeted to its lowest level since November 2015, sparking speculation that a major price rally could be imminent. According to crypto analytics platform Santiment, the available supply of ETH has dropped to 8.97 million, marking a near decade-low. This decline suggests that investors are moving their ethereum into cold storage wallets, signaling growing confidence in ETH’s future price performance.
The decrease in supply has led some analysts to predict an upcoming price surge, akin to what was seen with Bitcoin in January 2021 when Bitcoin reserves on exchanges hit a seven-year low before surging to new all-time highs. With demand potentially outpacing supply, some traders are forecasting a similar supply shock for ETH in the coming months.
Crypto trader Crypto General believes it’s only a matter of time before the “big supply shock” occurs, and commentator Ted predicts that this could lead to bidding wars among buyers. Meanwhile, other analysts have set lofty price targets for E, with one predicting ETH could soar as high as $8,000 to $10,000, which would represent a 64% increase from its all-time high of $4,878 reached in November 2021.
However, the bullish narrative is tempered by some bearish signals. Ether’s performance against Bitcoin is currently at its lowest in five years, and its price has fallen by 26% over the past month. Additionally, spot Ether ETFs have experienced 12 consecutive days of outflows, totaling $370.6 million.
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Final Thoughts on Ether
While some believe Ethereum could be at a generational bottom, others caution that the asset may continue to struggle in the short term. Will Ether’s declining supply lead to a massive rally, or is this just a temporary blip in an ongoing downtrend?
