Ethereum supply on crypto exchanges hits decade low

Ethereum’s offer on exchanges has fallen at its lowest level since November 2015, with only 8.97 million ETH available

According to an analysis of March 21 by Santiment, this decrease is largely due to the growing popularity of finance and decentralized clearing. The sales pressure has decreased as more carriers lock their assets rather than keeping them on exchanges. Ethereum (Ethn) The supply in exchange decreased by 16.4% in the past seven weeks, indicating a long -term accumulation trend.

But this compression of the offer did not at least benefit the price of Ethereum. ETH plunged 47% compared to its December 4,05 summit at its price of $ 1,990 on March 21, making it one of the most efficient major cryptocurrencies.

Chain and technical indicators suggest more down. Recently standard approved analysts lowered Their objective of ETH courses by the end of the year from $ 10,000 to $ 4,000, citing increased competition from other networks, in particular the Ethereum ALS 2.

Because they charge less fees, the layer-2 networks attract more users and decrease the activity of the Mainnet. According to Defillama dataThe volume of last week treated by the Dex protocols based in Ethereum was $ 9.8 billion, of which $ 5.67 billion was managed by Arbitrum (ARB) and the base alone.

The monthly volume Dex sur Ethereum increased from $ 92 billion in December to $ 82 billion in February, with even smaller volumes expected in March. This drop in the use of the main ones had an impact on income from Ethereum costs, a key element in its economic model. From $ 218 million in December to only $ 46 million in February, Ethereum costs have decreased considerably.

Although transactions are now less expensive thanks to Dencun upgrade, which has reduced gas costs by 95%, Ethereum revenues continue to drop. The total value of locked Ethereum also increased from $ 76 billion in December to $ 46 billion at the time of the press.

A potential buoy for Ethereum could come from the markup of negotiated funds on the stock market. The New York Stock Exchange and the Chicago Board Options Exchange both have subject Requests to the American Commission for Securities and Exchange to allow stimulation in ETHEREUM ETF. Since the ETHEREUM SPOT ETF experienced $ 370 million outings During the previous month, institutional interest is still low.

On the technical side, Ethereum continues to decrease and faces resistance at $ 2,042. The 50 -day mobile average acts as a barrier, and Bollinger strips have low volatility, suggesting consolidation.

ETH is recovering from the conditions of occurrence, but a significant momentum is missing, according to the RSI, which is 41.22. While the low volume indicates the uncertainty of the trader, a slight increase indicates a certain accumulation.

The following objectives are $ 2,163 and $ 2,370 if ETH exceeds $ 2,042. If $ 1,986 is not detained, there may be a drop to $ 1,714, where previous purchase interests emerged.