Bitrabo Editorial
Ethereum (ETH) has seen a series of higher lows since May 12, 2023, with the bulls now eyeing the critical $2,000 mark. While ETH has struggled to cross this level in the past, recent on-chain metrics suggest that investors are preparing for a new rally.
The declining trend in ETH supply on exchanges and the accumulation of coins among crypto whales could have a positive impact on Ethereum’s price in the coming days.
Ethereum Supply on Exchanges Hits 5-year Low
Since the successful completion of the Merge, investors have increasingly moved their ETH off exchanges for long-term self-custody or staking. In the last week, withdrawals have caused a significant drop in the amount of ETH held on exchanges, with the supply metric at its lowest since March 2018.
This is positive for ETH’s price, as it reduces the number of coins available on exchanges and often encourages buyers to offer higher prices. Furthermore, moving tokens to DeFi staking smart contracts helps secure the network while supporting projects on the blockchain.
Bigger Whales Are Buying Out the Smaller Whales
While smaller institutional investors have sold ETH in the recent past, the largest investors have been accumulating coins. According to on-chain data, investors with 10 million to 1 billion ETH in their balances have increased their holdings by 1.62 million ETH between May 22 and June 5, while another cluster of whales holding 1 million to 10 million ETH sold 500,000 coins in the same period. This suggests that the largest and most influential whale cohort in the Ethereum ecosystem is bullish and could encourage others to follow suit.
ETH Price Prediction: Clear Path to $2,000?
Considering the recent bullish activity among whale investors, ETH could move higher in the coming weeks and cross the $2,000 mark. However, IntoTheBlock’s Global In/Out of The Money Around Price (IOMAP) data suggests that ETH could face resistance around the $1,900 level, where 2.56 million investors who bought 3.36 million ETH at an average price of $1,895 could sell and break even.
If the bulls manage to surpass this resistance, however, ETH’s price could rise further towards $2,050. On the other hand, if ETH’s price drops below the critical $1,800 support zone, the bears could invalidate the bullish stance. Nonetheless, the 3.76 million investors who purchased 3.55 million ETH at an average price of $1,797 will likely hold this support, preventing a significant retracement below $1,700.
Disclaimer
This price analysis article is for informational purposes only and should not be considered financial or investment advice. Bitrabo 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.