Ethereum Supply on Exchanges Drops to Lowest Level Since 2015
Ethereum (ETH) recently fell below the $2,000 mark after briefly surpassing it. Key points include:
- ETH has declined nearly 47% from its December peak of $4,105 to around $1,970 as of March 21.
- Available supply on exchanges dropped to 8.97 million ETH, the lowest since November 2015, reflecting a 16.4% decrease in seven weeks due to increased DeFi and staking activity.
- A significant withdrawal of 360,000 ETH from exchanges in the last 48 hours indicates bullish sentiment among holders.
- Despite the supply reduction, Ethereum's price performance is hindered by decreased mainnet activity and falling fee revenue, dropping from $218 million in December to $46 million in February.
- Total value locked (TVL) in DeFi reduced from $76 billion in December to $46 billion.
- Institutional interest is low, with $370 million in outflows from Ethereum Spot ETFs over the past month.
- The SEC's upcoming decision on Ethereum staking ETFs could stimulate demand if approved.
- Current Relative Strength Index (RSI) is at 40.72, indicating neutral to slightly bearish momentum, with trading near the lower Bollinger Band.
- Resistance level to watch is $2,368.70.