The decrease in Ethereum (ETH) balance on centralized exchanges has accelerated following the approval of spot Ethereum ETF products by the United States Securities and Exchange Commission (SEC). Centralized trading platforms serve as the primary means through which the majority of investors engage with cryptocurrencies, particularly Ethereum.

Insights on ETH

Renowned cryptocurrency analyst, Ali Martinez, highlighted that approximately $3 billion worth of around 777,000 ETH has been withdrawn from crypto exchanges since the introduction of spot Ethereum ETF products in the US. Despite these ETF products not yet commencing trading on exchanges, the sustained withdrawal trend could have a profound impact on ETH's price trajectory over the long run.

An intriguing observation from the analyst's data reveals that the current Ethereum balance on exchanges has hit its lowest point since at least December 11, 2023. Given the substantial institutional interest in Bitcoin through spot ETF products, Ethereum may soon experience a scarcity of supply.

Institutional Enthusiasm for Ethereum

An accumulation akin to Bitcoin in the Ethereum spot ETF could propel the price of Ethereum significantly in a short period. A similar occurrence was witnessed with Bitcoin when institutional investments drove its price to a record high above $73,000 in March.

Multiple cryptocurrency analysts have suggested that for ETH to surpass its previous all-time high of $4,891.70, the full launch of the spot Ethereum ETF product is crucial. In an optimistic scenario, Standard Chartered projects that the cryptocurrency could climb to $8,000 by the year's end.

Aside from the ETF product, Ethereum boasts various fundamental aspects that could contribute to its long-term price appreciation. The platform is undergoing significant innovations and upgrades to optimize the performance of Layer-2 protocols. Experts believe that the convergence of these factors might enable Ethereum to break out of its current stagnation and initiate a substantial upward price movement.

This article was originally published on COINTURK NEWS.