The crypto market has just experienced a surprising "transformation" as Ethereum (ETH) reserves on exchanges have sharply dropped to the lowest level in nearly a decade. Not only is "supply not meeting demand", but according to onchain data, large "Whales" are also starting to accumulate more ETH.
Ethereum Reserves Decline Sharply – Supply Gradually Depleting
According to data from CryptoRank and Santiment, Ethereum reserves on exchanges have dropped to only 8.97 million ETH, the lowest level since November 2015. Particularly, as the amount of ETH on exchanges decreases, this indicates that investors are switching to accumulating their ETH, reducing selling pressure in the market.
ETH Supply. Source: Cryptorank
Is this a sign of an impending "supply crisis" for ETH? Certainly, as this could lead to a major supply shock and Ethereum's price could change at any time, especially in a context where many small investors are losing confidence in this token.
Ethereum Whales Accumulate as Price Dips Below $2,000
While Ethereum has dropped below $2,000 for the first time in over a year, "whales" are increasing their ETH accumulation activities. Here is the link to an article proving that Whales are continuously accumulating ETH at low prices: Is ETH at the Dip? What Do Onchain Data and Whale Accumulation Look Like
In fact, the number of wallets holding at least $100,000 in ETH has increased from 70,000 to 75,000 in just two weeks. This shows that large investors are seeing opportunities as ETH prices decline.
Number of wallets holding at least $100,000. Source: glassnode
Macroeconomic and Legal Situation
Besides crypto market volatility, macroeconomic and legal factors are also impacting investor confidence. Uncertainty about trade and tax issues may cause short-term difficulties, but good news from the crypto community is the dismissal of the US Securities and Exchange Commission's (SEC) lawsuit against Ripple, helping the situation become more positive.
According to VanEck's prediction at the end of 2024, Ethereum could peak at $6,000 in 2025, while Bitcoin could also reach $180,000.
Summary
With the sharp decline of Ethereum reserves on exchanges, coupled with increased accumulation by large investors, Ethereum may be preparing for a strong recovery. However, this still depends on whether ETH can overcome important resistance levels like $2,200. If this happens, ETH prices could surge in the near future.
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