Ethereum (ETH) is showing promising signs of a resurgence, with its price surging 5.4% in the past 24 hours to climb above $2,535, pushing its market cap to $306.22B, according to CoinMarketCap. This sharp rally coincides with a historic milestone: Ethereum’s supply on exchanges has dropped to just 4.9%, the lowest level in its 10-year history.
A Record-Low Exchange Supply
According to recent data, only 4.9% of Ethereum’s total supply is currently held on trading platforms. For context, this means less than 5% of all ETH in circulation is readily available for selling.
Over the past five years, an impressive 15.3 million ETH have been moved off exchanges. These coins haven’t vanished—they’ve likely been transferred to cold wallets, long-term holdings, or institutional custody.
With fewer coins available to sell, many believe a supply squeeze is kicking in. Some crypto experts say this growing scarcity could help push Ethereum to $5,000. This trend is further amplified by rising institutional demand for Ethereum ETFs, creating a classic scenario of low supply and increasing demand.
Bitcoin Shows a Similar Trend
Ethereum isn’t alone in this pattern. Bitcoin (BTC) is also experiencing a supply crunch, with just 7.1% of its total supply sitting on exchanges—the lowest level since November 2018. Historically, every major bull run in crypto has been preceded by such supply squeezes.
For instance, the last time Bitcoin’s exchange supply was this low, its price surged nearly 20x over the following years. Could Ethereum follow a similar trajectory?
Ethereum’s Price Surge and Leadership Change
The recent price jump comes amid significant changes in the Ethereum Foundation’s leadership. Hsiao-Wei Wang and Tomasz K. Stańczak, the Co-Executive Directors, alongside a newly appointed President. This leadership shift signals renewed focus and strategic direction for Ethereum’s future development.
Meanwhile, crypto analyst Crypto Patel presents a “Golden Cross” pattern on ETH’s 1-day chart, which is often know as an indicator of a potential strong rally. He believes that if this trend persists, ETH could soon target prices between $4,000 and $5,000.
What’s Next for Ethereum?
With Ethereum’s supply on exchanges at a record low, combined with growing institutional interest and recent price momentum, the stage seems set for a potential rally. Analysts speculate that Ethereum could reach $5,000 if the current dynamics persist.
However, investors should remain cautious, as external factors like regulatory developments or macroeconomic conditions could influence Ethereum’s trajectory.
Final Thoughts
The dwindling supply of Ethereum on exchanges highlights a growing trend of hoarding and long-term holding, which could fuel further price appreciation. As Ethereum continues to evolve under new leadership and institutional adoption rises, all eyes are on whether it can replicate Bitcoin’s historical bull runs.
For now, Ethereum’s supply drop situation paints a bullish picture, but only time will tell how far this momentum will carry the second-largest cryptocurrency.
