Ethereum Exchange Balances Drop Drastically, What This Means For ETH Price

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Ethereum is currently ranging around $2,200, with its price undergoing a calm volatility in the past 7 days. New data from Santiment has revealed the current sentiment among Ethereum whale addresses, as the total supply on exchanges recently hit a new low. According to the on-chain analytics platform, more than 240,000 ETH have left 10 of the biggest ETH exchange wallets in the past 24 hours. 

As a result, the cumulative number of ETH deposited across crypto exchanges dropped from 8.03 million ETH to 7.79 million ETH in a single day, one of the largest it has ever seen. With the current price of ETH hovering around $2,200, this represents a drop of over $528 million worth of ETH in exchange balances. 

Ethereum Exchange Supply Plummets

Ethereum is currently down by 1.74% in the past 24 hours and is currently retesting its breakout level of around $2,200 which seems to have turned into a support. However, the drastic drop in Ethereum balances on exchanges is a very bullish sign for ETH. With less ETH available on exchanges, supply is reduced.

ETH whales have been on a buying spree since the beginning of the month, as many look forward to an extended bull run at the dawn of the new year. Data from IntoTheBlock put a 98.52% increase in exchange outflow volume in the past 30 days. Just last week alone, whales bought more than 100,000 ETH worth $230 million. 

This sentiment continued into this week, with 240,000 ETH leaving exchanges in 24 hours, leading to a 2.99% drop in coins held on exchanges. According to Santiment, only 8.07% of Ethereum’s total supply currently sits on exchanges, the lowest it has ever been.  

ETH has failed to clear the $2,250 price level, falling to $2,120 in the late hours of December 19. At the time of writing, ETH is now trading at $2,208. Price action suggests the crypto is still yet to gain strong traction among retail investors and is ongoing a retest.

According to crypto analyst Ali Martinez, Ethereum is bouncing around its breakout zone from an ascending triangle. If this consolidation continues, we could see a price range between $2,150 and $1,900 before a breakout to a target of $3,500.  

Ethereum is up by 82.67% this year and the outlook for 2024 remains bullish. According to crypto analyst Altcoin Daily, ETH’s journey to $10,000 seems sure at the moment, pending Ethereum Spot ETFs a major catalyst for this price growth.

Ethereum price chart from Tradingview.com

Source: NewsBTC

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