Ethereum price could make a recovery as ETH supply on exchanges hits an all-time low

Ethereum, the second largest cryptocurrency by market capitalization, noted a considerable decline in its supply on exchange platforms. ETH tokens on exchanges have hit a new all-time low since Ether’s genesis.

Ether on exchanges hits lowest level recorded

Ethereum supply on exchanges now accounts for 8.04% of the asset’s total supply according to Santiment data. This is the lowest level recorded since Genesis. The altcoin’s supply on exchanges typically influences the asset’s price. A reduction in supply is considered bullish as it supports the thesis of declining selling pressure on ETH. 

There is an increase in active addresses on Ether, as noted by Santiment’s active addresses metric, in the chart below. This supports a thesis for ETH price recovery. 

Ethereum active addresses. Source: Santiment

Ethereum trades above $2,200 despite consistent profit-taking by ETH traders since October 2023. The Network Realized Profit/Loss chart indicates whether traders are realizing losses or gains in their ETH trades. 

Network Realized Profit/Loss. Source: Santiment

Ethereum price could make a recovery to $2,551, the 61.8% Fib level of ETH’s decline from its April ‘22 peak of $3,582 to June ‘22 low of $883.42. Ethereum price faces resistance at $2,458, and $2,500 as seen in the chart below. 

ETH/USDT 1-day chart

A daily candlestick close below 50% Fib level at $2,232 could invalidate the bullish thesis for Ethereum price.