Ethereum (ETH) Price May Be Poised to Explode as Exchange Holdings Plunge to Record Lows

The price of Ethereum in the digital asset market is in the spotlight amid changes in the supply of the coin held on centralized exchanges.

The price of Ethereum (ETH) is in the spotlight amid changes in the supply of the coin held on centralized exchanges. These Ethereum holdings have reached record lows.

What Is Happening With Ethereum?

The percentage of the second-largest cryptocurrency on centralized crypto exchanges has been spiraling downward, suggesting a possible supply squeeze. According to Chain Brief’s latest X post, only 14% of ETH’s total supply is still on centralized crypto exchanges.

This marks the lowest level recorded for the second-largest assets. Conversely, the remaining 86% of ETH is being held in private wallets or on staking platforms, limiting the available trading supply.

The shift also reflects a growing preference for decentralized finance and self-custody. More investors are choosing to hold ETH outside of exchanges, reinforcing Ethereum’s position as a long-term asset.

If demand continues to increase, the limited supply on exchanges could soon set the stage for strong price movements.

This development comes as Ethereum’s price direction has entered a consolidation phase after pushing past the psychological level of $2,000.

According to a report by Benzinga, traders and investors are closely watching this consolidation to determine the next stage of the market.

After a brief decline, ETH is now stabilizing above the 50-day Exponential Moving Average (EMA), which provides support for traders.

Calm Market, Potential Breakout

While the market remains relatively calm, some analysts believe Ethereum is preparing for its next breakout. An earlier ETH price analysis shows a potential breakout to $4,000 is looming amid a sustained consolidation in tight ranges below $2,000.

This breakout potential is being fueled by a triple-bottom pattern at around $1,500, which acts as a strong support level.

At the same time, the 50-day EMA is providing additional support for the coin, and a move above the 200-day EMA could herald a continuation of the bull market.

However, if the price drops below the triple-bottom support or the 50-day EMA, it could indicate a reversal of the uptrend.

Rising Demand Could Take Ethereum Price to $10,000

Recent developments have led market experts to believe the Ethereum price is on its way to $10,000. For example, recent data on X from Crypto Elites shows that the ETH price breakout agenda has already begun.

According to the post, traders and investors may see a positive price swing at any moment. Essentially, this speculation is based on a combination of factors beyond its supply dynamics.

It encompasses institutional adoption, Ethereum’s ongoing Pectra upgrades, and operational ETF filings.

Inadvertently, as more ETH leaves centralized exchanges and long-term holders accumulate, the conditions for a significant price surge are forming.

The Ethereum community is now closely watching for immediate catalysts that could fuel this upward momentum. If demand continues to grow and supply remains limited, Ethereum could be heading for new all-time highs toward the $10,000 mark.

As of 08:12 ET (12:12 GMT), the Ethereum price was trading at $2,008.40, showing a decrease of 2.67% over the past 24 hours. Nonetheless, the coin displayed gains of 5.87% over the seven-day period.