#ETH mega pump coming? #Ether on exchanges falls to near-decade low?

Ether’s supply on #crypto exchanges has dropped to its lowest level since November 2015, leading some analysts to predict a major price rally despite recent bearish sentiment.

“#Ethereum's holders have now brought the available supply on exchanges down to 8.97M, the lowest amount in nearly 10 years (November, 2015),” crypto analytics platform #Santiment said in a March 20 X post.

A significant decline in ETH supply across crypto exchanges can signal a potential price surge soon, commonly known as a “supply shock.” However, a surge will only happen if demand remains strong or increases to outpace the reduced supply.

It was recently seen in #Bitcoin. On Jan. 13, Bitcoin reserves on all crypto exchanges dropped to 2.35 million #BTC, hitting a nearly seven-year low that was last seen in June 2018. Just a week later, Bitcoin surged to a new high of $109,000 amid the inauguration of US President Donald #Trump.

Some crypto traders and analysts anticipate a similar scenario for Ether.

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

Crypto commentator Ted said in a March 19 X post that with ETH supply on crypto exchanges decreasing by the day, “buyers will soon compete, leading to bidding wars.”

Meanwhile, crypto trader Naber said in an X post on the same day that the largest ETH accumulation is taking place, and it may lead to Ether reaching the $8,000 to $10,000 price range. Even at the lower end of $8,000, Ether would be up 64% from its all-time high of $4,878, reached in November 2021.

While the supply decline is giving crypto traders hope for ETH, other signals have recently cast a bearish shadow over the asset.

Its performance against Bitcoin has been at its lowest in five years. Daan Crypto Trades said in a March 19 X post that it is “unlikely to see this anywhere near its highs anytime soon.”

Ether is currently trading at $1,971, down 26% over the past month according to CoinMarketCap data. Meanwhile, spot Ether ETFs have had 12 straight days of outflows totaling $370.6 million, according to Farside data.

“This has been one brutal downtrend,” Daan Crypto Trades added.

Scott Melker, aka “The Wolf of All Streets,” said, “Either Ethereum bounces here and this is a generational bottom, or it’s over.”

cointelegraph.com/news/ethereum-supply-decline-crypto-exchanges-price-prediction-analysts