Key Insights:
- Ethereum holdings on exchanges have dropped to their lowest level in nine years.
- Large investors continue purchasing ETH, suggesting supply scarcity may drive future price surges.
- Ethereum price stabilizes near key support levels, positioning it for potential gains toward $2,000-$2,200.
Ethereum (ETH) held on exchanges has fallen to its lowest level in 9 years. Market analysts observe a shifting pattern in Ethereum’s supply dynamics.
They predict increasing accumulation behavior and declining selling pressure. These trends could drive a significant price rally soon.
Ethereum Supply on Exchanges at Historic Low
ETH balance on centralized exchanges has dropped to its lowest level since 2016, falling below 10%, according to Glassnode data. This decline suggests increased self-custody and reduced selling pressure.
The blue line depicting exchange balance reveals decreasing quantities since mid-2020. The decline of Ethereum holdings on centralized exchanges demonstrates increased cryptocurrency storage in self-custody and cold wallets for extended periods.
The reduction in exchange supply leads to a decrease in the ETH that traders can immediately sell. Exchange users can sell fewer Ethereum because the circulating supply is reduced on platforms.
Price volatility tends to rise when demand increases and supply stays restricted. Price surges generally appear during market cycles after supply liquidity reduces through asset removal.
Market analysts consider the declining exchange supply as a sign that investors display greater confidence in the market.
Whale Activity Supports Bullish Sentiment
Market whales show indications of buying more Ethereum through recent market purchases. On-chain data shows a single whale’s purchase of $3.1 million worth of ETH. The transaction register shows another instance of high-valued investors joining the accumulation pattern.
The market anticipates whale activities that align with network supply conditions, including exchange-supplied asset declines. Experienced market participants who make large Ethereum purchases often signal confidence in its future value.
Their actions suggest expectations of price appreciation and long-term gains. Such market moves strengthen the belief that selling activities remain low throughout this phase.
The continuous ETH acquisition by whales creates speculations that their actions could eventually create supply scarcity. Previous ETH bull runs exhibited similar holding patterns, which we observe currently.
Market Cycle Points to Upcoming Impulsive Phase
Market analyst CryptoProject6 shows that the Ethereum price follows a pattern of three repeating stages: Corrective, recovery, and impulsive.
ETH completed its 2022 corrective phase, which included major downturns and periods of price stability. The price increased gradually from 2023 through early 2025 while recovery took place.
CryptoProject6 spots the potential entry of Ethereum into its impulsivity phase. This brings swift price hikes after sustained periods of stable prices.
The analyst forecasts that the price of Ethereum will climb to $7,000 in 2025. By early 2026, it could reach between $7,000 and $10,000, following historical market cycles.
The analyses rely on previous cycles showing significant price increases during similar phases. The market is impulsive at accumulation completion points, where more trading participants enter.
Today’s market structure aligns with exchange supply data and major institutional accumulation trends. These factors suggest conditions may be in place for Ethereum to enter its next growth phase.
Technical Indicators Support Upward Momentum for Ethereum
ETH price action on the 4-hour ETH/USDT chart signaled the potential conclusion of its recent decline. Its price increased from $1,600 to $1,700 in the support area. At press time, Ethereum was trading at $1,787 and is starting an upward trend.
Market analysts believe that if Ethereum stays above $1,700, its price could increase to between $2,000 and $2,200. The area above $1,700 is acting as support, which could help push the price higher.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.