The price of Ethereum (ETH) has surpassed $3,300, with traders discussing the potential for further growth to the $6,000 mark. This surge is attributed to various factors, including increased institutional investment and dwindling supply on exchanges.
Decrease in Ethereum Supply on Exchanges
One of the most significant signs of a growing market is the decline in Ethereum reserves on exchanges. When less ETH is available, it becomes more difficult to sell quickly, supporting price increases. Currently, Ethereum reserves on exchanges have dropped to levels comparable to early September 2024, when ETH was near $2,150 before surging over 90% in 101 days.
OTC Market Demand
Major OTC desks, such as Wintermute, now have almost no Ethereum left to sell, indicating strong demand off the public exchanges. This suggests that large investors have bought up available ETH behind the scenes. For example, SharpLink Gaming increased its Ethereum holdings from $892 million to $965 million in just one day amid the ETF buying frenzy.
Ethereum Price Predictions
The ETH price has already climbed over $3,300 and shows strong signs of an ongoing uptrend. Projections indicate the next key resistance level is at $3,618, and if broken, a move towards $4,500 seems plausible. However, there is a risk that if ETH falls below $2,870, it could signify waning bullish momentum.
The current price dynamics of Ethereum (ETH) and declining exchange reserves create favorable conditions for potential growth, but traders should remain vigilant for possible corrections.
