According to recent data from analysts at Glassnode, the total volume of Ethereum coins on cryptocurrency exchanges has sharply decreased over the past few months — since the beginning of July, the figure has dropped by about 43%. The decline has been one of the sharpest in the history of observations.
What is happening with Ethereum
Experts from Glassnode emphasize that the Ethereum market $ETH is experiencing an unprecedented scale of supply shortage. According to them, 'Ether is entering the most strained supply state in its history' — such levels of inventory on exchanges have not been observed before. Although market sentiments may seem cautious or even pessimistic, this is not reflected in the issuance: supply is decreasing while the market analyzes what path will be chosen next.
Simultaneously with the decrease in exchange inventories, the activity from large companies sharply increases — they are acquiring Ether and are now holding it on their corporate balance sheets, indicating long-term strategic plans.
The growing interest in staking and long-term storage
An active migration of Ethereum to staking and 'cold' storage has become part of the overall trend. Such actions reduce liquidity in the spot market and increase the shortage of cryptocurrency available for trading.
As a result, in recent days, the price of Ethereum $ETH has demonstrated a strong hold above the key level of $3000. According to analysts, if the coin breaks through the resistance at the level of $3200, the next logical target could be $3500.
Corporate investments — a signal of long-term confidence
The increase in the share of Ether-assets on the balance sheets of large companies is perceived by experts as a sign that investors continue to view Ethereum as a strategic asset. This trend enhances confidence in the crypto market and lays the foundation for stable growth, especially with improvements in the macroeconomic situation and the potential influx of fresh capital.
What the forecasts say
For example, Tom Lee, co-founder of the analytical company Fundstrat and chairman of BitMine, previously stated that Ethereum could significantly rise in the coming months and reach the mark of $20,000. Such a forecast is an indicator of long-term optimism regarding the second most capitalized cryptocurrency.
Why this is important
The reduction of Ethereum stocks on exchanges indicates a growing shortage — this increases price pressure with rising demand.
Support from major players and the increase in shares in company holdings enhance the reputation of Ethereum $ETH as a long-term investment tool.
Staking and the movement of coins into long-term storage reduce liquidity in the market, which could provoke new price movements upward with any surge in buyer demand.
If the price breaks through the current resistances, the growth potential remains significant — both in the short term and in the long term.
