Ether Lee (ETH) is still almost 50%more than 50%of the $ 4,878, but there is a sign that the second largest cryptocurrency can be experienced by the market cap.Supply shockBecause the reserves for major cryptocurrency exchanges such as binance are reduced.
See Massive Fall for Binance Ethereum Reserves
According to the recent Cryptoquant Quicktake Post of the on-chain analyst AMR Taha, ETH reserves for Binance have been steadily dropping since April 14. TAHA mentioned that by May 14, EXCHANCE's ETH reserves have been reduced from 4.2 million to 3.9 million.
In a relatively short period of time, these rapid decrease in the discussion of ETH's shortage of supply. When the coins are small in exchange, sales pressure tends to decrease. This reduction can lead to Higher price If the available ETH is more limited, the demand is maintained constant.
TAHA suggested two reasons why Binance's ETH reserves decrease. First, investors suggested that ETH can be transferred to cold wallets or in a deciphery finance (Defi) protocol for security or yields.
Second, institutional investors may withdraw a large amount of ETH for purposes such as OTC transactions, private investments or staying that can be purchased without prescription. These activities reduce the amount of exchange reserves without making sales pressure. Taha concluded:
The reduction of 300,000 ETH of Binance's reserves suggests notable transitions of investor behavior, perhaps long -term holding, staying or institutional accumulation. This can alleviate immediate sales pressure, but traders must closely observe the interaction between this trend and overall market demand.
Are ETH preparing for a rally?
Additional data points suggest that ETH is preparing for major rally in the mid -term. In a separate encryption post, Blitztrading analyzed the actions of ethics.
In context, ethical whales are generally a wallet address with more than 10,000 ETHs. Blitztrading shared the next chart and shows that ETH's last major modifications occurred after the whale earned $ 4,000 when the price reached $ 4,000.
At present, this whale seems to have not gained significant profits. However, Blitztrading has carefully monitored this indicator because it can inform the potential correction when ETH enters the excess area due to the surge in whale sales.
Some analysts set Ether Leeum's ambitious price goals in this market cycle. For example, encryption analyst TED Pillows prediction The ETH can reach $ 12,000 later this year.
Pillow pointed ETH seems to follow the Wyckoff accumulation pattern. He believes that if the current momentum is owned, ETH will be able to recover $ 4,000 by the third quarter of 2025.
The foundation of Ether Leeum is also being strengthened. Recent network complete PECTRA upgrades are expected to improve performance and security. In the press time, ETH is trading at $ 2,541, down 2.2% over the last 24 hours.
Chart of Cryptoquant and TradingView.com
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