According to CryptoQuant, the amount of Ether being held in exchanges has gone down tremendously in the last 48 hours. Data from CryptoQuant also indicates that only 8.1 million ETH is currently in the custody of exchanges at the moment with that amount also expected to fall soon.
According to Alex Saunders from Nuggets News, there was a 10% drop in Ether holdings in exchanges yesterday Jan 14 with the number going from 11 million to 10 million. Saunders went on to predict a further drop that would see those numbers shrink further. According to him “Exchanges will run out of ETH in 10 days at current rate.”
Saunders revised his earlier prediction because of the events of early January 15, 2021. A further 20% drop in ether reserves prompted an even grimmer prediction for those seeking to buy some ETH. According to Saunders, exchanges may run out of ETH within the next 48 hours.
Other data companies are also highlighting the drop in ETH holdings among exchanges. A reported 42.5% fall has been noted since an all-time high of 14.1 million in Mid-May last year. Glassnode data adds that ETH supply hasn’t been this low since mid-2018 with only 7% of Ether’s total supply currently being held by exchanges.
Rising demand short supply
According to Nuggets News contributor Alex Saunders, the fall in Ether holdings is because of rising demand. According to him the dwindling supply is an indication of an impending bull-run that could take the ETH price to unprecedented highs. Saunders refereed to history to explain his reasoning by saying; “We all know what happened when demand outstripped supply of $BTC. It quadrupled in 90 days.”
According to CryptoQuadrant data, the current rate of ETH being taken out of exchanges far outpaces that of BTC. BTC reserves only saw a drop by 4.5% since October 21 with the BTC price going up by 230% from then till now. According to crypto market accelerator Into The Block, Ether is currently exhibiting bullish signals that include a bid-to-ask volume imbalance of almost 9%. The drop in Eth supply could be a signal that traders are bracing to ride a protracted uptrend.
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