– Ethereum supply has decreased by nearly 70,000 ETH tokens since the blockchain’s transition to Proof-of-Stake.
– With its shrinking supply and bullish momentum, Ethereum pushed above previous range highs and experts predict a rally to $2,000.
– Dormant Ethereum addresses across exchanges continue pulling their ETH out of trading platforms, typically considered a bullish sign.
Ethereum transition from Proof-of-Work to Proof-of-Stake (PoS) was the last major upgrade to the altcoin’s blockchain and the Shanghai
hard fork is the next one.The shift to PoS purged 70,000 ETH tokens from the altcoin’s circulating supply.
Experts are bullish on Ethereum’s recovery from the Fear, Uncertainty and Doubt (FUD) surrounding regulatory crackdown on Binance and predict an ETH price rally to $2,000.
Also read:
Ethereum price steadies above $1,700 as ETH holders grow confident ahead of token unlock
Ethereum supply nosedives by nearly 70,000 ETH
Ethereum supply plunged with the altcoin’s Merge, or the transition event to PoS.Nearly 70,000 ETH tokens have been pulled out of circulation, effectively reducing the selling pressure on the second-largest cryptocurrency by market capitalization.
Ethereum Supply Decreasing Post Merge
A decrease in the volume of tokens under circulation is typically considered bullish for an asset.
Can Ethereum’s shrinking supply fuel ETH rally to $2,000?
Ethereum’s shrinking supply is one of the bullish drivers for the altcoin.Pentoshi, a crypto analyst on Twitter has predicted an Ethereum price rally to $2,000.
The largest altcoin made a recovery above previous range highs after a retest on Tuesday.According to the expert a rally above the $1,778 level is a bullish sign.
ETH/USD 1D price chart
A drop below the previous range high could invalidate the bullish thesis for the smart contract network’s token.Pentoshi is bullish on the altcoin since it made a swift recovery from the FUD surrounding regulatory crackdown on the largest cryptocurrency exchange in the ecosystem, Binance.
Another bullish factor is Ethereum leaving exchanges.
Large wallet investors and wallets that were dormant on crypto exchanges are pulling
ETH holdings off trading platforms.This is another driver of bullish sentiment among holders.
Dormant Ethereum wallet withdraws $3.45 million in ETH from Binance
A wallet address that had been dormant for nearly three years withdrew 2,000 ETH tokens worth $3.45 million from Binance earlier today.The address has no transactions after its 1 million USDC withdrawal from the exchange in 2020.
Ethereum transaction of dormant address
With Ethereum leaving exchange platforms, ETH reserves on exchanges are expected to decline, contributing to a rally in the altcoin.
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