Ethereum Exchange Balances Drop to 18.8 Million ETH Amid Supply Drain
Ethereum (ETH) Surges Above $4,000
- ETH has surpassed $4,000 for the first time since December, indicating bullish momentum.
- Market sentiment is improving due to strong fundamentals and institutional interest.
- On-chain data shows ETH exchange reserves declining, suggesting large holders are moving coins off exchanges.
- This trend may lead to a supply shock as demand rises in DeFi and staking activities.
Liquidity Drain from Centralized Exchanges
- Exchange reserves have reached a historic low of 18.8 million ETH.
- Institutional players are accumulating ETH, creating a supply squeeze.
- Reduced liquidity could result in upward price pressure if demand continues.
Institutional Adoption and Regulatory Clarity
- Companies like Sharplink Gaming are purchasing substantial amounts of ETH for treasury strategies.
- Increased legal clarity in the U.S. is facilitating broader adoption of Ethereum.
Price Action Analysis
- ETH broke above $3,860 resistance, reaching $4,017 with a 14.87% weekly gain.
- The 50, 100, and 200-week SMAs support a long-term uptrend, with volume spikes indicating genuine buying interest.
- Next targets are around $4,800–$4,900; volatility near psychological levels may lead to short-term pullbacks.
