Ethereum's (ETH) exchange supply hit a nine-year low, signaling reduced selling pressure and potential for a price surge.
ETH Supply Decline and Market Impact
The supply of Ethereum surpassed 10.5 million ETH in April 2024 but fell below 9.5 million by mid-2024. Early in 2025, it dropped further below 9 million ETH. This reduction suggests a shift in investor sentiment toward long-term holding, potentially reducing liquidity and driving prices higher.
Technical Outlook: Ethereum Primed for a Breakout
Despite recent price declines, the medium-term trend for Ethereum remains bullish. Merlijn The Trader indicates an uptrending channel in ETH's price action. Ethereum repeatedly touched its lower trendline of the channel since mid-2022, reflecting strong buying interest. The current Relative Strength Index (RSI) near 70 suggests a potential upcoming surge.
Conclusion
Ethereum's exchange supply decline to nine-year lows points to potential future market shifts. This could lead to significant price recovery if current trends continue.
The reduction in Ethereum's exchange supply to nine-year lows highlights the potential for future market changes, possibly leading to significant price increases as current trends persist.
