- Ethereum reserves on cryptocurrency exchange platforms declined to its lowest level since March 2018.
- The altcoin sustained above the $1,800 level as exchange reserves nosedived.
- Analysts at Global Investment Firm VanEck set a target of $11,800 for Ethereum price.
Ethereum token reserves on exchange wallets have declined to their lowest level since 2018. As of June 5, ETH reserves sit at 17.2 million Ether, a multi-year low. Dwindling Ethereum reserves are considered a bullish catalyst for the altcoin, while analysts set an $11,800 target for the altcoin.
Ethereum on exchanges plummets to multi-year low
Ethereum, the largest altcoin in the crypto ecosystem witnessed a decline in its reserves across exchange wallets. Based on data from crypto intelligence tracker, as of June 5, Ethereum reserves have dropped to 17.2 million ETH. This is the lowest level since March 2018.
The chart below reveals that 700,000 Ether tokens were pulled out of exchange wallets between May 22 and June 5.
Ethereum balance on exchange
The chart shows a considerable decline in Ether reserves between May 16 and June 5. Typically, dwindling reserves signal a reduction in ETH supply and a decrease in selling pressure on the asset. The reduction in ETH balance on exchanges is therefore a catalyst to drive the altcoin’s price higher.
Ethereum price sustains above $1,800 level as VanEck analysts set bullish target
Ethereum price sustained above the $1,800 level amidst market uncertainty, supporting the bullish thesis for a price rally in ETH. Analysts at VanEck, the crypto investment firm, valued Ethereum with a rigorous model, projecting a revenue increase from an annual $2.6 billion to $51 billion in 2030.
Ethereum valuation scenarios according to VanEck analysts
In their base case, analysts assume Ethereum will likely be priced at $11,848 per token. As of June 2023, an Ethereum purchase is discounted if it is below $5,359.71, according to the report.
The bullish thesis is based on the estimate that Ether will emerge as a dominant open-source global settlement network that hosts substantial portions of the commercial activity of business sectors. This would position Ethereum as a majority market share holder among similar smart contract platforms.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.