Investors Go Long on ETH as Supply on Exchanges Dwindles: Report
- Santiment noted that ETH’s supply on exchanges is in decline.
- The intelligence firm also revealed that average transaction fees for ETH are at March 2023 levels.
- Technical indicators suggested that ETH’s price would continue to rise in the next 24-48 hours.
In their latest tweet, the market intelligence platform Santiment revealed that Ethereum (ETH) was witnessing a decline in supply on exchanges despite failing to sustain its value at $1,900. Moreover, the average transaction fees have returned to levels observed in March of this year, right before the altcoin leader’s price surge to $2,100.
This combination of factors suggests a potential shift in the market dynamics for the altcoin leader. While ETH’s price stability remains uncertain, the reduced supply on exchanges and the fee normalization may indicate increased confidence and activity within the Ethereum network.
In related news, CoinMarketCap indicated that most of the top 10 cryptos were trading in the red after the brief relief in the market over the past few days. ETH was no exception to this as the altcoin saw a 1.43% price drop over the past 24 hours, which left it trading at $1,883.56.
This meant that, at press time, ETH was trading closer to its daily low of $1,866.26 than its 24-hour high of $1,912.40. The altcoin’s weekly performance was, however, still firmly set in the green at +12.76% despite its latest price descent.
From a technical perspective, ETH’s price was able to break above the key resistance level at $1,900 during yesterday’s trading session, but was not able to close the session above the significant price point. Nevertheless, technical indicators suggested that the altcoin’s price would attempt to flip the level into support in the next 24-48 hours.
The 9-day EMA line had crossed bullishly above the 20-day EMA line in the past 24 hours. This signaled that ETH entered into a short-term bull cycle and its price would continue to rise in the next few days. Furthermore, the daily RSI was in neutral territory at press time, which indicated that ETH still had some room to rise before entering overbought status.
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