Despite recent price struggles, Ethereum (ETH) faces significantly low selling pressure.
Ethereum has been subject to ongoing jokes within crypto circles due to its poor performance in recent years. Its price struggles are amplified by the broader crypto market downturn over the last two months.
While Bitcoin is up 25% over the past year and XRP nearly 300%, ETH has dropped over 40%. However, there are signs of hope for the asset.
Ethereum Selling Pressure Almost Non-Existent?
Despite its recent price challenges, Ethereum is currently experiencing exceptionally low selling pressure.
Specifically, Ethereum supply on exchanges is at a ten-year low, according to crypto analytics provider Santiment Feed.
In an X post on March 20, Santiment reported that following a 16.4% drop in seven weeks, only 8.97 million ETH remains on centralized exchanges—the lowest since November 2015.
This decline in Ethereum exchange supply is considered bullish, indicating that just 7.4% of the nearly 121 million ETH supply is available for sale.
Why ETH Exchange Supply Dropping
Santiment noted that the drop in Ethereum supply on exchanges is primarily due to holders participating in DeFi and staking activities. Amid declining prices, holders are utilizing these strategies to mitigate losses through yield opportunities.
At the time of writing, ETH is trading at $1,971.66, down 2% for the day, as macroeconomic concerns continue to dampen risk markets. Until these conditions improve and demand for risk assets rises, ETH is unlikely to feel the impact of any exchange supply shortages.
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