Ethereum price could make a recovery as ETH supply on exchanges hits an all-time low – FXStreet

Ekta Mourya
FXStreet
Ethereum, the second largest cryptocurrency by market capitalization, noted a considerable decline in its supply on exchange platforms. ETH tokens on exchanges have hit a new all-time low since Ether’s genesis.
Also read: Orbit Chain hackers ring in New Year with $81.4 million exploit
Ethereum supply on exchanges now accounts for 8.04% of the asset’s total supply according to Santiment data. This is the lowest level recorded since Genesis. The altcoin’s supply on exchanges typically influences the asset’s price. A reduction in supply is considered bullish as it supports the thesis of declining selling pressure on ETH. 

Ethereum supply on exchanges and price. Source: Santiment
There is an increase in active addresses on Ether, as noted by Santiment’s active addresses metric, in the chart below. This supports a thesis for ETH price recovery. 

Ethereum active addresses. Source: Santiment
Ethereum trades above $2,200 despite consistent profit-taking by ETH traders since October 2023. The Network Realized Profit/Loss chart indicates whether traders are realizing losses or gains in their ETH trades. 

Network Realized Profit/Loss. Source: Santiment
Ethereum price could make a recovery to $2,551, the 61.8% Fib level of ETH’s decline from its April ‘22 peak of $3,582 to June ‘22 low of $883.42. Ethereum price faces resistance at $2,458, and $2,500 as seen in the chart below. 

ETH/USDT 1-day chart
A daily candlestick close below 50% Fib level at $2,232 could invalidate the bullish thesis for Ethereum price. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Join Telegram
Join Telegram
Celestia (TIA) price currently sits at a key barrier of $12.93. Hence, the next move could make or break the altcoin. Investors should note that a breakdown of this support structure could trigger a steep correction.
Almost $300 million worth of crypto assets were stolen from more than 320,000 wallets, according to Scam Sniffer. A new form of malware, “wallet drainers,” is the cause of the majority of these phishing attacks.
Bitcoin price rallied by more than 6% over the weekend to hit a 21-month high, breaching the crucial resistance of $45,000. Bloomberg ETF analyst James Seyffart states that the January 9-10 approval window remains intact.
Cardano (ADA) price action is currently being held up by an inclining trendline. While a breakdown would give sidelined buyers an opportunity to accumulate, a breakout above a key hurdle could propel ADA higher. 
Bitcoin (BTC) price has been bullish in 2023, scaling up as it tried to plough back the ground lost following the Terra (UST) and FTX crashes of the preceding year. The trajectory took shape in spite of it being an eventful year, with BTC riding the wave of macroeconomic as well as industry-related developments.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, clients or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

source