Ether (ETH) has recently undergone a massive accumulation phase, paving the way for ETH to break out with one of the most impressive price rallies we’ve seen. The total ETH held on centralized crypto exchanges has plummeted. It’s currently as high as it has been since November of 2015, a possible harbinger of an impending supply shock.
Now trading at about $1,971, ETH has had a brutal month, down 26% over the past 30 days. Despite the crash, investors are not discouraged. They’re making clear that they are in active transfer of their ETH into cold storage wallets for long term hold.
This kind of behavior would seem to point to some deep conviction in the future value of ETH. The dwindling supply of coins on exchanges, along with a growing confidence from investors, is setting up a competitive buying environment.
Only 12.3% of ETH is left on crypto exchanges, down by 16.4% since the end of January. This drop further underscores the virtuous cycle of accumulation among investors. A massive drop in ETH supply on crypto exchanges can be an indicator that a price rally is coming in the near term.
This has been one brutal downtrend. - Daan Crypto Trades
Spot ETH ETFs have been on a 12-day outflow streak at -$370.6 million. Despite all this, many investors are still surprisingly bullish. This prospect of a supply shock is driving the speculation that Ether could eventually trade in the $8,000 to $10,000 range.
ETH’s performance against Bitcoin has reached a five-year low. The persistent uptrend is evidence that this is no guesswork, investors are positioning themselves judiciously. The hope is that once buyers start competing, bidding wars will take over and prices will go up.
Either Ethereum bounces here and this is a generational bottom, or it’s over. - Scott Melker, aka “The Wolf of All Streets,”
