5. März 2023

Ethereum Price Falls 5% as Exchange Supply Hits Record Low

• Ethereum (ETH) has seen a decrease of around 6% in the last three days.
• The exchange supply for Ethereum (ETH) has decreased to its lowest level in five years.
• Exchange Netflow data shows that there have been more outflows than inflows of ETH, indicating token withdrawals rather than sell-offs.

Ethereum (ETH) Price Movement

Ethereum (ETH) got off to a great start this year, working to regain the positions it had lost over the previous few months. Recent price movements however, have stopped the increasing trend that started back in January. Most investors have responded this way despite the recent swings between highs and lows. In the previous three days, Ethereum (ETH) has decreased by around 6%, according to a daily timeframe analysis. Its price was roughly $1,560 as of the time of writing and its price movement has fallen below the short Moving Average (yellow line). The long Moving Average (blue line), which also served as support was recognized at about $1,513 and $1,448 and resistance was discovered in the $1,600 to $1,700 range. Additionally, the recent decrease has turned Ethereum’s trend from bull to bear; with its Relative Strength Index dipping just barely below the neutral region.

Exchange Supply Decreases

A recent Santiment report showed that the percentage of overall Ethereum (ETH)’s supply on exchanges has decreased due to its declining price; reaching its lowest level in nearly five years at 11% of total supply as of writing time. Comparing with another similar metric revealed more outflows than inflows from exchanges; showing token withdrawals rather than sell-offs being sparked by this decline in price. Furthermore, volume indicators show low activities taking place across all exchanges during this period

Price Prediction for 2023-24

At present it is difficult to make any accurate predictions for ETH prices due to market volatility and speculation surrounding crypto markets and their future trends; however some analysts predict ETH prices could reach upwards or even double current prices by 2023 or 2024 if certain conditions are met such as larger institutional investments and wider adoption amongst businesses and consumers alike globally..

Conclusion

Despite Ethereum’s recent dip in value over 5%, investors remain optimistic on what lies ahead for ETH holders given current metrics suggest tokens are being withdrawn rather than sold off along with predictions that prices could reach two times current values by 2023 or 2024 depending on certain conditions being met such as wider adoption amongst businesses and consumers alike globally..

References

https://www.tradingview.com/symbols/BTCUSD/ https://blog.santiment.net/ethereum-exchange-supply-at-5year-low/ https://cryptoquant.com/