Ethereum price broke $2,000 on Monday, November 20, after consolidating at the $1,950 area over the weekend. On-chain analysis uncovers how US-based corporate investors have reacted to Blackrock’s recent ETH filing.
Ethereum price reclaimed $2,000 on Monday. On-chain data shows that corporate investors have now entered a race to accumulate ETH following Blackrock’s Spot ETH ETF filing.
Ethereum Supply on Exchanges Has Dropped to 5-year Low
Ethereum price has moved sideways over the past week. But a closer look at recent on-chain data trends shows that ETH investors have started making strategic bullish moves after Blackrock Spot ETH ETF filing.
The chart below shows the Ethereum coins deposited across crypto exchanges stood at 14.5 million as of November 15. But investors have since moved 152,583 ETH off exchanges, bringing the total market supply to a 5-year low of 14.3 million.
Exchange Reserves are an on-chain metric that tracks the total supply of a cryptocurrency deposited in exchange-hosted ETH wallets. Typically, a decrease in exchange supply infers a drop in the number of coins readily available to be traded on exchanges and trading platforms.
With Ethereum’s price currently hovering around $2,000, the 152,583 ETH removed from exchanges is worth approximately $305 million.
Specifically, July 2018, was the last time the ETH market supply was this low. Crypto whales and sophisticated high-networth investors are known to opt for cold wallet storage. If the Blackrock ETF filing attracts more whales to buy ETH, the exchange supply will likely drop even further.
Notably, ETH price had also dropped to 2018 lows when it skyrocketed to an all-time high of $4,891 back in 2021.
Hence, the rapid decline in Ethereum market supply could put upward pressure on ETH price toward the $4,000 market if the Ethereum and Bitcoin (BTC) Spot ETF applications are approved by the Securities and Exchange Commission (SEC).
Top crypto platforms in the US | December 2023
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.