Reshab AgarwalDo you remember the new Ethereum protocol that is supposed to burn tokens in every transaction? That, combined with several other factors, has resulted in a shortage of Ethereum supply in exchanges. The current supply was similar to the levels in December 2019, and presently, Ethereum is sitting at a 28-month low. And this low supply can push Ethereum prices to new highs if we see a fresh demand. We might soon be able to see Ethereum trading at new price levels.
Low supply of Ethereum
The low supply of Ethereum is due to some important factors. One of these includes the Defi pulse that has been taking up a lot of Ethereum supplies. These protocols have taken in more than 1.5 million Ethereum since March 8th. Plus, the NFT market has been booming, and most of them take Ethereum as payment. Their apps are widely used, and this is resulting in a lot of Ethereum supply used for payments rather than transactions.
Many big whales are also eating up a lot of the supply and making the market illiquid. Sushipswap holds over 3 million Ethereum coins, while Uniswap holds about 1.4 million. And the decentralized exchange also holds over 1 million Ethereum coins. The Ethereum 2.0 deposit contract also holds a lot of supply. It has over 3.5 million in deposits amount to almost $6 billion. The number of Ethreum loans is also increasing, which has also resulted in a colossal decrease in its supply.
Price prediction of Ethereum
Ethereum is currently trading below the $1800 price level, and the market is bearish for the same. The analysis says that there is a high chance for Ethereum to test $1500 again and bouncing back based on response. And if the price is able to steady above $1800, then ETH could take a chance to cross the $1850 resistance level. If it is able to do that, then $1900 and $1950 levels will be very crucial for the price of Ethereum. If this low supply continues and the demand increases, we can expect the price of Ethereum to make a new all-time high. Well, let’s say what happens in a few days.
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Also, Read: Bitcoin’s bull run could end very soon. Here’s Why?