Ethereum’s Epic Plunge: Will It Soar Past $3,000? 🚀💰

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According to the whimsical on-chain data from the illustrious analytics platform Santiment, the supply of Ethereum on exchanges has plummeted to an all-time low, dipping below 4.9%. This unprecedented event, marking the lowest level in its 10+ year history, is a clear sign of a dramatic shift in investor behavior. Oh, the times they are a-changin’! This could very well be the harbinger of an impending upside for Ethereum, especially as the sentiment around the cryptocurrency grows increasingly bullish. 🦖🚀

Ethereum (ETH) is currently trading around $2,530, a miraculous recovery from its April lows around $1,385. The past seven days have been a wild ride, with ETH’s price action marked by intense volatility. After reaching a peak of approximately $2,730, the price faced resistance and dipped below $2,600. Despite this minor setback, the overall market sentiment remains optimistic. 📈✨

Amidst the back and forth in Ethereum’s price action, on-chain data reveals a declining trend in the ease of trading ETH tokens on crypto exchanges. According to Santiment, a mere 4.893% of all ETH is now held on trading platforms, a milestone never before seen in Ethereum’s 10+ year history. Interestingly, more than 15.3 million ETH have been withdrawn from exchanges over the last five years alone. 🤑💰

This historic low can be partially attributed to the rise in ETH staking in the past five years, especially since the launch of the Ethereum 2.0 upgrade. The side effect of this has been a continued decline in exchange liquidity. However, this decline also limits the amount of ETH available for spot selling, thereby reducing the kind of sell pressure that typically causes sharp price drops during market corrections. 🛑📉

On-chain data from CryptoQuant further supports this tightening supply narrative, showing that whale wallets holding between 10,000 and 100,000 ETH have accumulated over 450,000 ETH in the last month alone. These large-scale acquisitions come at a time when exchange balances are shrinking. The chart from CryptoQuant illustrates how whale balances have surged alongside a steady increase in Ethereum’s price since April 7. 🐳📈

The optimistic on-chain data has been echoed by the ever-prophetic macro investor and crypto analyst Raoul Pal. In a recent interview, Pal waxed poetic about Ethereum’s explosive potential, saying, “I think ETH is going to shock people probably going forward. It’s going to explode.” His outlook is based on the entry of an altcoin season. 🌟💥

As it stands, all eyes are on the $2,800 resistance. Technical analysis shows that a Golden Cross has recently been confirmed on ETH’s 12-hour chart. A clean breakout from this technical formation could open the doors to $3,000 and $4,000, particularly if Bitcoin sustains its current momentum on its way to a new all-time high above $108,800. 🚀💰

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2025-05-21 07:16