The price of Ethereum in the digital asset market is in the spotlight amid changes in the supply of the coin held on centralized exchanges. According to onchain updates, these Ethereum held on exchanges have reached record lows. Traders and investors are watching this development closely to see how it affects price movements.
ETH Supply Squeeze and its Impact
The percentage of the second-largest cryptocurrency on centralized crypto exchanges has been spiraling downward, suggesting a possible supply squeeze. Per onchain data, Chain Brief on X disclosed that only 14% of ETH’s total supply is still on centralized crypto exchanges. This marks the lowest level recorded for the second-largest assets.
Per historical trends, declines in exchange-held ETH suggest that investors are moving their holdings to private wallets or staking platforms, limiting the available trading supply.
The shift also reflects a growing preference for decentralized finance and self-custody. More investors are choosing to hold ETH outside of exchanges, reinforcing Ethereum’s position as a long-term asset.
If demand continues to increase, the limited supply on exchanges could soon set the stage for strong price movements.
The Ethereum Consolidation
In line with the current market position, data shows that Ethereum’s price direction has entered a consolidation phase after pushing past the psychological level of $2,000.
In an X post, Adam Horton, a vocal crypto trader and analyst, shared that ETH is now moving sideways. The coin is stabilizing above the 50-day Exponential Moving Average (EMA), a key support level for traders.
While the market remains calm, some analysts believe Ethereum is preparing for its next breakout. An earlier ETH price analysis shows a potential breakout to $4,000 is looming amid a sustained consolidation in tight ranges below $2,000.
Can Ethereum Price Hit $10,000?
Recent developments have led market experts to believe the Ethereum price is on its way to $10,000. For example, recent data on X from Crypto Elites shows that the ETH price breakout agenda has already begun.
Per the update, traders and investors may see a positive price swing at any moment. Essentially, this speculation is based on a combination of factors beyond its supply dynamics. It encompasses institutional adoption, Ethereum’s ongoing Pectra upgrades, and operational ETF filings.
Inadvertently, as more ETH leaves centralized exchanges and long-term holders accumulate, the conditions for a significant price surge are forming.
The Ethereum community is now closely watching for immediate catalysts that could fuel this upward momentum. If demand continues to grow and supply remains limited, Ethereum could be heading for new all-time highs toward the $10,000 mark.
As of press time, market data shows that Ethereum price was trading at $2,008.40, down 2.67% in the last 24 hours
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