Ether (ETH) has been experiencing a significant decline in value in recent weeks, losing 26% over the past month. However, despite this drop, interesting trends have been observed in the supply of ether on cryptocurrency exchanges. According to data from platform Santiment, the amount of ether on exchanges has fallen to its lowest level since November 2015. This could indicate that investors are moving their assets into cold wallets, expecting the price to rise in the future.
A decline in ether supply on exchanges usually causes a wave of interest among traders, as it could lead to a supply shortage and, as a result, a price rise. Some analysts believe that a “supply shock” awaits us in the near future, which could lead to a sharp increase in the value of ether, as was the case with bitcoin in early 2023.
However, despite the upside potential, ether has a series of challenges to overcome. Recent indicators show that etherium is losing ground against bitcoin, and its long-term outlook remains in question. Investors and traders are still waiting to see if the downturn in exchanges will have an impact on further growth or if the situation will continue to deteriorate.
