Ethereum Supply Drop Signals Potential Price Surge Amid Institutional Interest
The Ethereum supply is decreasing sharply as institutional accumulation intensifies, potentially setting the stage for a significant price breakout. Key points include:
- Over 40% of Ethereum is currently locked out of circulation.
- Digital asset treasuries such as Bitmine and Bit Digital have accumulated nearly 5.9 million ETH, representing 4.9% of the total ETH supply.
- U.S. spot Ether ETFs have absorbed $28 billion in ETH since their launch, with potential growth pending regulatory approval for staking.
- Ether staking activity has reached record levels, with 35.7 million ETH staked, accounting for almost 30% of the total supply.
- Ethereum’s supply ratio on Binance has dropped to a multi-month low, indicating increased self-custody by investors.
The current price of Ether is approximately $4,150, with an increase in trading volume by 13%, reaching $63 billion. Analysts suggest a strong support zone around $4,000, with expectations of further price increases if it breaks the weekly resistance level of $4,874.
Tom Lee from BitMine reaffirms a year-end target of $10,000 for ETH, supported by historical data suggesting average returns of 21.36% for the fourth quarter since 2016.