Ethereum Price: 7-Year Low Exchange Supply Fuels Breakout Hope

Ethereum's price has rallied over 100% since April, reaching highs above $2,700, but momentum is fading as it struggles to break key resistance levels. Despite this, on-chain data reveals a bullish signal: Ethereum's supply on centralized exchanges has plummeted to a seven-year low. This signifies reduced selling pressure, as investors move ETH to self-custody wallets, potentially anticipating further price increases. This low exchange supply acts as a stabilizing force, bolstering the long-term bullish outlook despite short-term uncertainty. Analysts see this as a critical juncture, with a potential breakout above $2,700 triggering aggressive buying and potentially initiating a broader altseason. The current consolidation around $2,500 is viewed by some as a prelude to this breakout. However, the situation is not without risk. The recent pullback shows weakening momentum, with ETH trading below short-term moving averages. A failure to reclaim the $2,550 level could accelerate bearish momentum towards $2,358. Despite global macroeconomic headwinds, including rising US Treasury yields and US-China trade uncertainty, Ethereum's strengthening fundamentals and low exchange supply suggest resilience. The combination of low exchange supply and potential breakout above key resistance levels is a key factor for analysts and traders closely watching Ethereum's price action. The sustained consolidation above $2,450 demonstrates resilience despite market volatility. A successful reclaiming of the 34 EMA with strong volume could lead to a retest of the $2,650-$2,700 zone, setting the stage for a significant price increase. In summary, while short-term uncertainty exists, the seven-year low in exchange supply presents a strong bullish indicator for Ethereum's long-term potential.

(Source: https://www.newsbtc.com/news/ethereum/ethereum-supply-on-exchanges-hits-7-year-low-breakout-loading/)