According to analyst Ali Martinez, a whopping 360,000 ETH tokens were withdrawn from crypto exchanges in the last 48 hours.
Ethereum ETH $1 967 24h volatility: 0.5% Market cap: $237.05 B Vol. 24h: $9.99 B has been at the center of attention after it touched the $2,000 mark, but lost it not long after.
Despite a record-low supply on exchanges, ETH has struggled to gain upward momentum, declining nearly 47% from its December high of $4,105 to its March 21 price of $1,970, according to CoinMarketCap.
According to blockchain analysis platform Santiment, Ethereum’s available supply on exchanges has dropped to 8.97 million ETH, the lowest since November 2015.
👋 Thanks to the many DeFi and staking options, Ethereum’s holders have now brought the available supply on exchanges down to 8.97M, the lowest amount in nearly 10 years (November, 2015). There is 16.4% less $ETH on exchanges compared to just 7 weeks ago. 😮 pic.twitter.com/r5957wPhLi
— Santiment (@santimentfeed) March 20, 2025
This marks a 16.4% decline in just seven weeks, fueled by the rising popularity of decentralized finance (DeFi) and staking.
The reduction in exchange-held ETH suggests an ongoing accumulation phase, which historically has led to supply squeezes that favor bullish price action in the long term.
Also, as per prominent analyst Ali Martinez, a whopping 360,000 ETH tokens were withdrawn from crypto exchanges in the last 48 hours, suggesting that holders are bullish on the price action of the cryptocurrency.
Martinez also shared a chart highlighting key support and resistance levels, with a recent breakdown below a critical horizontal support level around $2,050.
#Ethereum $ETH hits $2,000. Cool, but zoom out! The big picture is brewing something bigger. pic.twitter.com/vK4BW8ybFQ
— Ali (@ali_charts) March 21, 2025
The chart also suggests a measured move target significantly lower, possibly near $1,100, based on the distance between the previous range’s resistance and support levels.
Declining Fee Revenue and Mainnet Activity
Despite the supply crunch, ETH has underperformed due to reduced mainnet activity and declining fee revenue.
Ethereum Layer-2 networks such as Arbitrum and Base have gained traction, offering lower transaction fees, which has drawn users away from the Ethereum mainnet.
This shift has impacted Ethereum’s revenue, with fees dropping from $218 million in December to just $46 million in February. Moreover, Ethereum’s total value locked (TVL) in DeFi has declined from $76 billion in December to $46 billion.
Staking ETFs: Potential Lifeline?
Institutional interest in Ethereum remains tepid, with $370 million in outflows from Ethereum Spot ETFs over the past month.
However, the upcoming decision by the United States Securities and Exchange Commission (SEC) regarding Ethereum staking ETFs could change the game.
If approved, staking ETFs could provide a new avenue for institutional investors, increasing demand and reducing liquid supply further.
In February, Cboe BZX Exchange filed a 19b-4 application for approval to stake ETH held in an Ethereum ETF on behalf of 21Shares.
Ethereum (ETH) Price Analysis
The Relative Strength Index (RSI) stands at 40.72, signaling neutral to slightly bearish momentum for Ethereum. The gradient of the line suggests sluggish momentum in the short term.
Ethereum’s price is trading near the lower Bollinger Band, indicating that it is in a downward trend but could see a temporary mean reversion toward the middle band ($2,040.92).
The upper resistance level at $2,368.70 remains a key level to watch.
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