🚨 **Ethereum Supply Shock: A Game Changer for Altcoins?** 🚨

**📉 Key Insights:**

- **Massive Outflow**: Over **$3 billion worth of Ether** has exited centralized exchanges since the approval of spot Ether ETFs on May 23.

- **Significant Drop**: **797,000 ETH** left exchanges between May 23 and June 2, signaling a potential supply squeeze.

- **Low Exchange Holdings**: Only **10.6%** of circulating Ether supply is held on exchanges, the lowest in recent years.

**📊 Market Predictions:**

- **ETF Impact**: Bloomberg analyst Eric Balchunas predicts Ether ETFs could launch by the end of June, potentially driving Ether to break its **November 2021 all-time high of $4,870**.

- **Demand Pressure**: Analysts suggest Ether may benefit more from demand pressure compared to Bitcoin, as Ethereum validators don't face the same "structural selling pressure" as Bitcoin miners.

**🔍 Analyst Insights:**

- **Michael Nadeau**: Highlights that Ether could gain more from demand pressure since validators don’t need to sell ETH to cover operating costs, unlike Bitcoin miners.

- **Grayscale Ethereum Trust Concerns**: The trust manages **$11 billion** in funds and could impact Ether's price, similar to how the Grayscale Bitcoin Trust saw **$6.5 billion** in outflows post-approval.

**📈 What to Watch:**

- **Ethereum ETFs**: Monitor the launch and performance of Ether ETFs.

- **Market Reactions**: Watch for price movements and market dynamics as Ether supply on exchanges continues to decrease.

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