Ethereum recently Breaking through the $2,000 price range Spot Ethereum ETF registrations have started piling up in the US over the past 24 hours. New on-chain data shows a clearer sentiment among ETH investors, with many appearing to be prepared for the long haul.
Data shows the amount of Ethereum held on exchanges has fallen since mid-last week to its lowest level since 2018. This means that there are fewer people selling Ethereum and more people holding it or staking it.
Ethereum exchange supply plummets
Although Ethereum is still down 2.57% over the past seven days, the cryptocurrency is currently trading above $2,000 after breaking the barrier on Monday, November 21. The latest surge will be Ethereum’s third. The price level has been exceeded We’re still trying to maintain consistent price increases this month.
The recent surge can be attributed to the following applications: Ethereum spot ETFs are piling up In front of the US SEC. Especially Black Rock Join the spot Ethereum ETF race. On November 15, ETH ignited a price surge that saw ETH surpass $2,000 for the second time this month.
Investors appear to have reacted to BlackRock’s ETH submission with the same sentiment as they reacted to the investment firm’s spot Bitcoin submission. CryptoQuant’s Exchange Reserves indicator indicates that sentiment began to change during this period, with investors starting to move assets off exchanges and into cold storage immediately after the news.
According to the indicator, the number of ETH deposited on cryptocurrency exchanges reached 14.5 million ETH as of November 15. However, this figure decreased by 152,583 ETH a few days later, reaching 14.3 million ETH on November 20.
Source: CryptoQuant
IntoTheBlock’s exchange Netflow echoes similar sentiments. Netflow calculates the number of tokens entering the exchange minus the number of tokens leaving the exchange. According to the indicator, the exchange has had approximately 228,450 ETH more outflows than inflows since November 15th.
Source: IntoTheBlock
What to expect from ETH price action in the coming months
Cutting exchange reserves reduces the amount of ETH available for trading, increasing scarcity. Data from CryptoQuant and IntoTheBlock indicates that Ethereum is bracing for a price surge due to increased scarcity.
At the time of writing, Ethereum is trading at $2,013. We have already seen the cryptocurrency price increase by 67% from $1,200 at the start of the year. Analysts expect this trend to continue. If supply tightens. According to cryptocurrency analyst Tony The Bull, Ethereum could soon surpass $10,000. When an optimistic scenario unfolds.
ETH price holds $2,000 | Source: ETHUSD on Tradingview.com
Featured image from Exame, chart from Tradingview.com