Ethereum Nears All-Time High as Exchange Supply Drops to 12%
Ethereum is inching closer to its previous all-time high, with analysts eyeing a potential breakout toward $6,000. The cryptocurrency has shown strong bullish momentum, supported by a significant decline in ETH supply on exchanges, which has fallen to just 12%. This reduction in available liquidity could fuel further price gains as demand outpaces supply.
The recent price action suggests Ethereum is forming a bullish flag pattern, a technical indicator that often precedes a strong upward move. If the pattern holds, ETH could target the $6,000 mark, a level that would represent a new record for the asset.
One key factor driving this optimism is the shrinking supply of ETH on exchanges. As more investors move their holdings into long-term storage or stake them in decentralized finance (DeFi) protocols, the available liquidity on trading platforms diminishes. This scarcity can amplify price movements, especially if buying pressure increases.
Market sentiment remains positive, with Ethereum benefiting from broader crypto market strength and growing institutional interest. The upcoming Ethereum network upgrades, including improvements to scalability and efficiency, are also contributing to investor confidence.
While volatility remains a risk, the combination of technical indicators and on-chain data suggests Ethereum could be poised for a significant rally. Traders will be watching key resistance levels closely, as a decisive breakout could open the door to new highs.
