Ethereum’s circulating supply is witnessing a notable decrease as more ETH gets staked and less remains on exchanges. This trend suggests traders are increasingly holding onto their Ether, possibly easing selling pressure.
After experiencing a 8% weekly decline, Ethereum’s price shows signs of potential recovery. Leon Waidmann, a respected editor and analyst at BTCEcho, highlights that around 25% of Ethereum’s supply is now staked. Waidmann believes this key metric underscores ETH’s bullish prospects.
Ethereum’s shrinking available supply, coupled with a solid holder base and growing confidence, may drive the cryptocurrency’s gains in the current market cycle. Santiment’s data reveals a significant drop in exchange-held Ethereum, hitting a six-month low at 10.32 million ETH. Generally, a reduction in exchange supply suggests less selling pressure, paving the way for price increases.
An important on-chain indicator, network growth, exhibits a bullish divergence. Despite ETH’s price dip between January 16 and 29, network expansion has risen, indicating underlying strength. This divergence lends support to optimistic forecasts for Ethereum’s price trajectory.
Historically, the period from January to May has been fruitful for Ethereum, with the altcoin frequently posting double-digit gains. Should history repeat itself and on-chain metrics remain favorable, Ethereum’s price could rebound from its recent downturn. As of now, Ethereum trades at $2,255 (R42,303.80) on Binance, presenting a potential opportunity for South African investors and traders
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