In brief:
- Ethereum reserves on crypto exchanges continue to drop
- Ethereum is on a path towards setting a new all-time high with the new month
- ETH confidently breaking $2k will open the doors to $2,500
The amount of Etheruem on crypto exchanges continues to hit new lows as investors continually withdraw their ETH holdings. The phenomenon was recently captured by crypto analyst Joseph Young who shared his observation through the following tweet and accompanying chart.
$ETH supply crisis intensifies. pic.twitter.com/3P3cLwhFjG
— Joseph Young (@iamjosephyoung) April 1, 2021
Crypto Exchanges now Hold 19.528M ETH Compared to 25.55M a Year Ago
From the shared chart and data from CryptoQuant, it is observed that Ethereum reserves on crypto exchanges now stand at $19.528 million ETH. This is a 23.5% drop from one year ago when Ethereum reserves on crypto exchanges were at 25.55 million.
Where the Ethereum is Going
The Ethereum withdrawn from crypto exchanges is ending up in the various DeFi protocols, cold wallets, DEXs such as Uniswap, ETH2.0 staking and the various NFT marketplaces.
Ethereum is on a Path Towards a New All-time High
At the time of writing, Ethereum is trading at $1,944 and $56 away from the elusive $2k ceiling. To note is that Ethereum closed the month of April at a value of $1,928 after 7 straight months of gains.
From a technical analysis point of view, Ethereum has bullishly broken past the upper boundary of a symmetrical triangle as demonstrated in the screenshot below.
In a recent analysis of Ethereum, the team at Crypterium research forecasted that ETH could post a new all-time high if it can consolidate above the identified symmetrical triangle. Furthermore, it could set the stage for possible growth towards $2,500 this month.
Also from the chart above, it can be observed that Ethereum’s daily trade volume is in the green with the daily MACD crossing in a bullish manner above the baseline. The daily MFI and RSI are yet to be overbought at values of 50 and 65 respectively. Therefore, Ethereum has the necessary bullish momentum to break past its recent all-time high of $2,042 – Binance rate.