Ethereum price aims for $2,500 as ETH supply one exchanges declines
- Ethereum tokens in exchange platforms declined by around 240,000 in the past day.
- Ethereum’s supply on exchanges is at an all-time low, fueling a bullish thesis for ETH price.
- ETH price could reclaim $2,500, technical indicators show.
Ethereum's (ETH) recent price action has mirrored the moves of Bitcoin (BTC), with a three-month correlation of 0.97. As the second-biggest crypto asset by market capitalization is closely following the fortunes of BTC, data from crypto intelligence tracker Santiment shows that ETH supply on exchanges has fallen to an all-time low, which could be a sign of further price gains.
Ethereum trades at $2,216 on Thursday, posting nearly 2% weekly loss.
Also read: Bitcoin price rallies to $44,000 as Spot BTC ETF deadline draws closer
Ethereum supply on exchanges hits all-time low
- Ethereum supply on exchanges as a percentage of the asset’s total supply is at 8.06%, the lowest level since ETH was created, according to Santiment data. At the beginning of 2023, supply was at around 11%.
 [13.25.07, 21 Dec, 2023]-638387492448198806.png)
Supply on Exchanges (as % of total supply ETH). Source: Santiment
- Typically, a decline in exchange supply reduces the selling pressure on the asset and supports the price gains.
- Ethereum’s network growth and volume have also increased alongside gains in the asset’s price. The two on-chain metrics support the ETH price rally.
 [13.23.34, 21 Dec, 2023]-638387493310055888.png)
 [13.22.49, 21 Dec, 2023]-638387493543566381.png)
Network growth and volume (ETH). Source: Santiment
Ethereum price eyes $2,500
Ethereum is currently in an uptrend that started on October 12. Since then, Ethereum price has made higher highs and higher lows, sustaining above $2,100 throughout December.
Ethereum price rose nearly 10% on month. In its uptrend, ETH faces resistance at $2,232.89, the 50% Fibonacci retracement level of the decline from April 2022 top of $3,582 to the June 2022 low of $883.42.
ETH/USDT 1-day chart
However, a daily candlestick close below $2,100 could invalidate the bullish thesis for Ethereum price.
Crypto analyst behind the X (formerly Twitter) handle @Mangyek0 is aligned with this forecast. The analyst predicts a Santa rally in Ethereum that could push its price to $2,500. Ethereum’s uptrend, combined with signs from the Relative Strength Index (RSI) and the Awesome Oscillator (AO), are likely to drive ETH price towards its $2,500 target.
Send $ETH to $2.5k soon. Christmas gift/Santa rallly
— MAXPAIN (@Mangyek0) December 21, 2023
- Price + RSI + AO squeeze = explosive rally pic.twitter.com/6wDJ4VIqWf
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
