- 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
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.
Recommended Content
Editors’ Picks
GameStop, GME, shorts lose over $1 billion in mark-to-market losses on Monday amid meme-stock demand
GameStop short-sellers have lost $1 billion in the first hour of trading on Monday after 2,200% surge. Multiple exchanges reportedly had trouble processing orders following GameStop rally, GME paused due to volatility x3.
JUP price primed for a liftoff as Jupiter Exchange introduces LFG round 3 candidates
After a successful second round in May, the Jupiter Exchange has introduced candidates for its third launchpad (LFG). The Solana-based decentralized exchange (DEX) has been holding LFG votes to identify projects that will debut on its platform.
Top meme coins post gains following increased social activity amid GameStop pump
Meme coins in the crypto market saw impressive gains on Monday following a recent surge in GameStop stock. The increased attention surrounding these tokens signifies a potential resumption of the meme coin frenzy of March.
US Senators raise grave concerns over DOJ's policies towards cryptocurrency asset providers
Senators Ron Wyden and Cynthia Lummis wrote to the Attorney General to express worries over new policies on money transmission. The DOJ has continued to take strict measures against crypto asset software services over the last few months, says Senators.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped.