Ether on exchanges drops to 8.97 million amid price decline

Ether’s (CRYPTO:ETH) supply on crypto exchanges has fallen to 8.97 million, its lowest level since November 2015, according to Santiment.  

In a March 20 post on X, Santiment noted that exchange balances have dropped 16.4% since late January, suggesting that investors are moving their holdings into cold storage.

This trend indicates growing confidence in Ether’s long-term value, with some analysts predicting a potential supply shock.  

Crypto trader Crypto General told their 230,800 X followers that it is “just a question of time before the big supply shock.”

Analyst Ted echoed this sentiment, stating in a March 19 X post that as supply decreases, “buyers will soon compete, leading to bidding wars.”  

Naber, another crypto trader, highlighted that the largest accumulation of Ether is underway and suggested that its price could reach between $8,000 and $10,000.

If Ether hits the lower end of this range, it would represent a 64% increase from its all-time high of $4,878 in November 2021.  

However, not all signals point to an imminent rally.

Ether’s performance against Bitcoin is at a five-year low. Analyst Daan Crypto Trades noted in a March 19 X post that it is “unlikely to see this anywhere near its highs anytime soon.”  

Meanwhile, spot Ether ETFs have seen 12 consecutive days of outflows, totaling $370.6 million, according to Farside data.  

“Either Ethereum bounces here and this is a generational bottom, or it’s over,” commented Scott Melker, known as “The Wolf of All Streets,” on the market downturn.

At the time of reporting, the Ethereum price was $1,971.98.