Ethereum bulls takeover as ETH supply on exchange plummets

The top 10 non-exchange Ethereum whales have over 24 million ETH tokens, effectively pulling them out of circulation and reducing supply. The level dwarfs the amount held by exchange whales. Proponents consider this a ‘takeover’ by Ethereum bulls that predicts a price rally in the altcoin. 

Ethereum supply on exchanges continues to drop 

Based on data from the crypto intelligence firm, Santiment, the ten largest Ethereum addresses across exchanges hold 3.82 million tokens. This is the lowest level held by large investors since the Ethereum price rally started. 

Interestingly, the top-10 non-exchange whale addresses held over six times the Ethereum tokens that exchange based investors held. Dwarfing exchange whales, non-exchange whales held the majority of the Ethereum tokens. 

Whilst non-exchange whales’ holdings are relatively high, they have been falling. At the same time the Ethereum balance across exchanges has remained relatively low. This implies a fall in selling pressure and the possibility of a takeover by bulls.

Ethereum non-exchange vs exchange whale holdings 

Analysts have evaluated the Ethereum price trend and predicted that the altcoin’s price could start a fresh rally if it remains above critical support. @Koolaid_crypto, a cryptocurrency analyst on Twitter considers $3,710 as a critical support level for Ethereum. 

If Ethereum price sustains above $3,710, bulls could takeover and start a new rally to all-time high. 

Crypto market fear and greed index is a useful contrarian indicator to determine the sentiment among traders. The last time this indicator read a fearful market (September 2021), a 60% increase in Ethereum price followed. 

The market is fearful yet again, and proponents expect the altcoin to start its climb. 

Crypto fear and greed index over time

FXStreet analysts have predicted that Ethereum price is primed to revisit $3,800, as support weakens.