Ethereum (ETH) price surged to $3,350 on April 28, rebounding 17% over the past 10 days, and on-chain metrics show a key reason for the recent uptick.
Ethereum holders reduced market supply by $17 million in 3 days
When the Ethereum price fell to a 2024 low of $2,868 on April 19, it triggered a wave of fears that an impending Bitcoin halving crash would cause ETH to hit new lows. However, instead of a massive sell-off, ETH whales and Liquidity Staking Derivatives (LSD) users turned to yield staking contracts to earn passive income to weather the market downturn.
As suggested in an earlier report from The Crypto Basic, a $6.2 million surge in Ethereum 2.0 staking appears to have helped slow selling pressure in the ETH market, judging by the past week’s data.
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Ethereum price action relative to Bitcoin price
Not surprisingly, Ethereum price has outperformed Bitcoin over the past 10 days. The above chart shows that ETH recovered 17% between April 19 and April 29. Meanwhile, the price of Bitcoin fell 5% over the same 10-day period.
Aside from price action, on-chain data trends observed over the past 3 days suggest that Ethereum is likely to extend its winning streak over Bitcoin in the coming week.
The IntoTheBlock Exchange Net Flow metric tracks the daily changes in the difference between deposits and withdrawals of a particular cryptocurrency across recognized cryptocurrency exchanges.
Basically, a negative exchange net flow trend means that investors are increasingly withdrawing coins into long-term storage or staking contracts, while reducing the available spot market supply, and vice versa.
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Ethereum ETH Price and Exchange Liquidity | IntoTheBlock
As can be seen from the snapshot, Ethereum has had negative flows for 3 consecutive trading days, starting on April 26th. During this period, investors transferred a total of 5,410 ETH from exchanges to long-term storage and staking contracts.
As of publication time on April 29, with ETH trading around $3,180, this means that ETH holders have reduced the current market supply by approximately $17 million.
ETH Price Prediction: $3,250 resistance is approaching
Taking a corollary from the $17 million reduction in Ethereum’s market supply, Ethereum price looks poised to outperform Bitcoin for a second consecutive week as bulls seek to recapture the $3,500 milestone.
But based on historical cumulative trends, Ethereum price must post a green candle above the $3,266 area, where 2.07 million addresses have purchased 4.93 million ETH, to validate this bullish price prediction.
Ethereum ETH Price Prediction
If Ethereum bulls can decisively break above $3,270, a further uptrend is likely to occur with the target of $3,500. But on the contrary, if there is another major decline in ETH price, it could slide to $2,980 before finding a significant support cluster.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may contain the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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