Some 777,000 ETH, or almost $3 billion, has been withdrawn from crypto exchanges.
If the ETH ETF sees an accumulation equivalent to Bitcoin’s, it might propel Ethereum’s price.
Since the spot Ether ETF products were approved by the US SEC, the balance of Ethereum (ETH) on centralized exchanges has been rapidly decreasing.
Most traders get their hands on Ethereum and other cryptocurrencies through centralized trading platforms. Ethereum’s availability is already under jeopardy, as top market expert Ali Martinez has hinted.
Significant Impact on Long-term Price Movement
Some 777,000 ETH, or almost $3 billion, has been withdrawn from cryptocurrency exchanges since the spot Ethereum ETF products were authorized in the US, according to a recent X post by Martinez.
Maintaining this pattern might have a significant impact on the long-term price movement of Ethereum, even though the ETH ETF products have not yet been officially trading on exchanges.
The data that the analyst supplied shows an interesting pattern. Specifically, the current Ethereum balance on exchanges is the lowest it has been since at least December 11, 2023. There might be a supply shock for Ethereum soon, given the huge amount of institutional investment in Bitcoin via its spot ETF products.
If the Ether spot ETF sees an accumulation equivalent to Bitcoin’s, it might propel Ethereum’s price upward in a flash. The same thing happened with Bitcoin in March, when the coin’s price hit a new All-Time High (ATH) above $73,000 due to the influx of capital from institutions.
According to numerous market experts, the full launch of the spot Ethereum ETF product is all that is needed for ETH to break its previous ATH at $4,891. The optimistic forecast from Standard Chartered suggests that the coin may reach $8,000 by year’s end.
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