Ethereum’s market is looking interesting right now. The amount of Ethereum available on exchanges has hit record lows, which, combined with other positive signals, suggests the cryptocurrency might be gearing up for a price increase. Basically, there’s less Ethereum readily available to buy, and that’s making some analysts think the price might have to go up.

Historically, big spikes in the amount of Ethereum on exchanges happened during the 2018 bull run and again with the DeFi craze of 2020-2021. But since 2022, it’s been a steady decline, hitting some of its lowest points ever recently. This scarcity is causing many to believe upward price pressure is building. One analyst points out that while long-term holders have started selling some of their Ethereum, it’s unclear just how confident these holders actually are about the market’s future.

Interestingly, while Ethereum has climbed back above $3,000, the big institutional players aren’t showing the same aggressive buying behavior we’ve seen in past bull runs. This suggests retail investors are driving the current price action, not big whales looking for quick profits. It also means that while Ethereum’s price is trending upward, a large buy or sell order could quickly change things. The lack of institutional activity also shows up in Ethereum ETFs; they’re seeing pretty neutral activity lately, which implies neither strong buying nor selling pressure from that sector.

So, where does this leave us? Ethereum’s supply is shrinking on exchanges, and if big institutions decide to jump in, we could see a significant price spike. Conversely, the lack of whale speculation means we might be in a healthier phase of price discovery, which reduces the risk of a sudden market crash. The big question now is: will the institutions start piling in? Or are we about to see a major correction? Only time and on-chain activity will tell.

Source: Ethereum Reserves Hit Historic Lows What It Means For Future Price Action | Nulltx.com