Ethereum price could make a recovery as ETH supply on exchanges hits an all-time low

Ethereum, the second largest cryptocurrency by market capitalization, noted a considerable decline in its supply on exchange platforms. ETH tokens on exchanges have hit a new all-time low since Ether’s genesis.

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Ether on exchanges hits lowest level recorded

Ethereum supply on exchanges now accounts for 8.04% of the asset’s total supply according to Santiment data. This is the lowest level recorded since Genesis. The altcoin’s supply on exchanges typically influences the asset’s price. A reduction in supply is considered bullish as it supports the thesis of declining selling pressure on ETH. 

Ethereum supply on exchanges and price. Source: Santiment

There is an increase in active addresses on Ether, as noted by Santiment’s active addresses metric, in the chart below. This supports a thesis for ETH price recovery. 

Ethereum active addresses. Source: Santiment

Ethereum trades above $2,200 despite consistent profit-taking by ETH traders since October 2023. The Network Realized Profit/Loss chart indicates whether traders are realizing losses or gains in their ETH trades. 

Network Realized Profit/Loss. Source: Santiment

Ethereum price could make a recovery to $2,551, the 61.8% Fib level of ETH’s decline from its April ‘22 peak of $3,582 to June ‘22 low of $883.42. Ethereum price faces resistance at $2,458, and $2,500 as seen in the chart below. 

ETH/USDT 1-day chart

A daily candlestick close below 50% Fib level at $2,232 could invalidate the bullish thesis for Ethereum price.