- Downtrend in Ethereum reserves across exchanges continues, supply shock is brewing in ETH.
- Active addresses holding ETH for less than 30 days are rising.
- Social volume is on the decline, analysts conclude that it is conducive for a bullish breakout in the short term.
Visa revealed the concept of Universal Payment Channel through a layer-2 network powered by Ethereum. As “The Merge” draws closer, Ethereum reserves across exchanges are dropping. A brewing supply shock is likely to trigger a bull run, pushing the altcoin closer to “Triple Halving.”
Ethereum price crosses $3,000 again on path to Triple Halving
Ethereum reserves across exchanges have plunged consistently over the past few months. With declining reserves, analysts predict a brewing supply shock in Ethereum. Historically, a drop in the circulating supply of a cryptocurrency is associated with a spike in its price.
Regardless of the altcoin’s price action, its supply on exchanges has taken sharp dips since mid-September 2021. It has hit the lowest level in the past six months, based on data from crypto market intelligence platform Santiment.
Ethereum supply on exchanges.
Ben Armstrong, Youtuber and creator of BitBoyCrypto.com, recently commented on the dropping supply of ETH,
1/3 of #Ethereum in supply has been moved off exchanges in the past year. Institutional investors pile into $ETH futures.
I don't know what to tell y'all, but this is all bullish sentiment and fundamentals for this bull run. #Bullish – Let get it pic.twitter.com/1PuMmNhTEm
— Ben Armstrong (@Bitboy_Crypto) September 30, 2021
