- Ethereum price chart shows bearish signs to analysts after chopping around for a year.
- A total of 2.1 million ETH tokens have been burned cumulatively, accounting for $6.25 billion.
- Despite the massive reduction in circulating supply, analysts don’t expect big moves in Ethereum price.
Ethereum price could plummet as analysts identify signs of bearish exhaustion in the altcoin’s price trend. This comes despite a drop in Ethereum’s circulating supply as the quantity of ETH burned hits a record 2.1 million.
Ethereum price could continue its downward trend
The total number of Ethereum tokens burned hit a new milestone, crossing 2.1 million today. Based on data from the Ethereum burn tracker, $6.25 billion in ETH has been burned so far, being pulled out of circulation permanently.
Typically, a drop in an asset’s circulating supply increases the buying pressure on exchanges. A reduction in Ethereum reserves across exchanges could drive the altcoin’s price higher, with a rise in demand for ETH.
Yet, analysts have evaluated the Ethereum price chart and identified bearish signs in the altcoin’s trend. @AltcoinSherpa, a crypto analyst and trader, observed that the Ethereum price has been choppy for a year without significant changes. Analysts don’t expect any big moves in Ethereum and predict consolidation for the next few weeks.
$ETHBTC: This has been chopping around for a year, not really doing much. I don't expect any big moves from this until btc is in a healthy place and I think that we just continue more consolidation for weeks/months. #Ethereum $ETH pic.twitter.com/hMxiSf09wv— Altcoin Sherpa (@AltcoinSherpa) April 27, 2022
Not all analysts are bearish, however. @Crypto_McKenna argues that the Bitcoin and Ethereum price trend has shown signs of bearish exhaustion. It is, therefore, likely that the Ethereum price will witness a trend reversal soon.
FXStreet analysts are also bullish. They have witnessed a rise in the number of Ethereum whales and predicted a breakout in ETH. Analysts believe the upside for Ethereum is at $3,400, and the altcoin’s price trend could change quickly.
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