Ethereum Price Hits $3.5k as Exchange Supply Reaches 34-Month High
The current price surge of Ethereum (ETH) has led to a notable increase in its supply on exchanges, reaching levels not seen in the past 34 months. As ETH surpasses the $3,500 threshold, its value has risen by 2.3% over the last 24 hours, now trading at $3,490. This surge has propelled the second-largest cryptocurrency, with a market cap of $419 billion, to briefly touch an intraday peak of $3,517.
Accompanying this price surge is a significant uptick in Ethereum’s daily trading volume, which has surged by 7.6% to $19.8 billion. Data from Santiment reveals that the Ethereum supply on exchanges has reached 19.52 million ETH, a level last witnessed in September 2021 when the asset traded around a similar price range.
Contrary to the supply increase, data from the market intelligence platform indicates a 12% decrease in whale transactions over the past day, dropping from 8,730 to 7,629 unique transactions daily. This trend suggests that the rise in Ethereum supply on exchanges is primarily driven by small deposits rather than substantial whale transactions.
The Ethereum Relative Strength Index (RSI), currently standing at around 60, as per Santiment, indicates that Ethereum is slightly overbought at its current price level. Despite this, the large market capitalization of Ethereum suggests that it may not be in a critical position.
A key factor driving the surge in Ethereum’s price is the anticipation surrounding the introduction of spot ETH ETFs in the United States. These investment products are set to commence trading on July 23, contributing to the positive momentum in Ethereum’s value.
In conclusion, the recent price rally of Ethereum, accompanied by a surge in its supply on exchanges to multi-year highs, highlights the growing investor interest and market dynamics surrounding this popular cryptocurrency. The impending introduction of ETH ETFs in the U.S. further underscores the positive sentiment driving Ethereum’s current price trajectory.
