ETH Price Eyes $3K as Whales Accumulate and Supply Dries Up

According to recent on-chain data from analytics firm Santiment, Ethereum supply on centralized exchanges has now slipped below the 4.9% mark, placing ETH price firmly in the spotlight. 

Such a dip hasn’t been recorded in Ethereum’s 10-year timeline until now, suggesting that more investors are choosing to hold their ETH for the long term, possibly showing stronger market confidence.

This news has brought renewed optimism among traders and analysts about the future of ETH. Many crypto analysts interpret the sharp decline in exchange supply as a bullish signal, suggesting the potential for a price increase if market demand strengthens

This is an unpredictable shift as less than 4.9% of ETH’s total supply is kept on exchanges; this shows how people are handling the largest and second-largest Cryptocurrency. 

Historic Drop in Ethereum Supply Signals Changing Market Sentiment

The current data shows that more investors are moving their Ethereum supply from the exchange and holding it in private wallets for the long term. This shows that they have strong confidence in ETH’s future value and believe that the price will increase. 

According to a CryptoRank.io report, in the last month, more than 1 million ETH were taken out of exchanges. Ethereum whale supports this trend. More than 4,50,000 ETH are added to their wallets. 

On May 10, they held the highest amount of ETH, which was worth 40.75 million. This shows that major investors are becoming more committed to ETH. Currently, Ethereum whales hold about 16.79 million ETH, according to on-chain data from CryptoQuant. 

Here are some important Ethereum metrics to help you understand its current market status and trends.

Metrics	Value	Sources
Current Price	$2,535.92	Coinmarketcap
24h Trading Volume	$25.43B	Coinmarketcap
Circulating supply	120.72M ETH	Coinmarketcap
Exchange Supply	4.9%	Santiment
All-time high	$4,891.70	Coinmarketcap

Institutional Appetite for ETH Continues to Grow

Institutional interest in ETH is also growing. BlackRock is now holding over $2.9 billion worth of Ethereum, which shows that major financial institutions are placing strong trust in ETH.

Market analyst Adriano Feria said on X that the ETH is the easiest and most logical choice for big Investors who are looking to spread their risk. He explained that it’s the only Cryptocurrency that offers access through ETFs, has regulatory clarity, and has built-in yield potential.

This strong support from institutions aligns with the declining Ethereum supply on exchanges. As more ETH is moved into long-term holding and taken off the market, it might lead to less price volatility and increased pressure for the price to rise. 

Network Upgrades and Staking Prospects Add to Bullish Sentiment

Ethereum is not just attracting investors, but it is also getting technically stronger. The Pectra upgrade, which was launched on May 7, has improved Ethereum’s data-handling capabilities. This upgrade has already boosted activity on layer-2 networks. For example, Base recorded 259 million transactions in just 30 days, according to L2Beat.

Another important development could arrive soon.  By June 1, the SEC is expected to decide whether the U.S. spot ETH ETFs will be allowed to support staking.

If it gets approved,  then this would allow institutions to earn rewards directly through ETFs, which might make them even more appealing. Major firms like BlackRock and other asset managers are actively supporting this proposal.

Experts Predict ETH Could Break Higher

Even after a 57% again in the last 30 days, many analysts think ETH is still undervalued. Arthur Hayes, co-founder of BitMex, recently said that Ethereum is in a strong spot for this bull market because it is very secure and has a lot of active developers.

As the Ethereum supply continues to shrink and more people are buying and holding, analysts are closely watching for the possibility of a price breakout. ETH is now priced at $2,535 and many believe that it might move towards $3000 soon.

Veteran trader Leon Saito said it is not only about the price now. ETH is growing. Big investors want it, whales are keeping it, and the network is getting better. This shows long-term growth and not just short-term changes.

Conclusion 

The Ethereum supply on exchanges is at its lowest point, and big investors and institutions are buying more ETH. The recent upgrades and clearer staking rules could help to push prices higher. Even though prices might change in the short term, the long-term view for ETH is looking strong as less ETH is available and demand is increasing. 

FAQs

1. What is the current ETH price according to CoinMarketCap data?

The Current ETH price is $2,535.92.

2. Why is ETH in the news headline?

ETH supply on exchanges has declined below 4.9%, making it the lowest in 10 years journey.

3. What does a drop in the Ethereum supply on the exchange mean?

 It shows signals that investors are holding ETH long-term, which can be a bullish sign.

4. What’s the total amount of ETH pulled from exchanges over the last five years?

Over a five-year span, users have withdrawn upwards of 15.3 million ETH from centralized trading platforms.

5. How much Ethereum is BlackRock holding?

BlackRock currently holds over $2.9 billion worth of Ethereum.

Glossary 

On-Chain Data- Live blockchain information used to track coin movement, wallet activity, and investor behaviour.

Whales- Crypto investors or wallets that hold very large amounts of a coin, usually over 10,000 ETH in this context.

Private Wallet- A secure digital wallet where users store crypto outside of exchanges, often used for long-term holding.

Exchange Supply- The amount of a cryptocurrency held on trading platforms. Less supply often means holders aren’t selling.

Net Inflows- The total amount of new money coming into a fund or asset—positive inflow shows growing interest.

Sources

Cryptonews

Crypto Rank

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