Ethereum Supply Shock Grows As Reserves Decrease, ETH 2.0 Contract Increases

Name	Symbol	Market	Market Cap ($)	Algorithm
Ethereum	ETHUSD	Crypto	370,772,602,216	Not Mineable

Name

Symbol

Market

Market Cap ($)

Algorithm

Ethereum

ETHUSD

Crypto

370,772,602,216

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	21.35	0.70%	3,087.20	3,087.09	3,087.24

Price Change

Price Change %

Current Price

Bid Price

Offer

21.35

0.70%

3,087.20

3,087.09

3,087.24

High Price	Low Price	Open Price	Prev. Close	52 Week Range
3,128.99	2,865.71	3,060.61	3,065.85	1,520.85 - 4,093.88

High Price

Low Price

Open Price

Prev. Close

52 Week Range

3,128.99

2,865.71

3,060.61

3,065.85

1,520.85 - 4,093.88

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	20:18:57	0.026815	3,087.28	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

20:18:57

0.026815

3,087.28

USD

Price x Volume	Volume	Base Symbol	Related Pairs
394,302,278.23	129,625.62	ETH	ETHEUR	ETHGBP	ETHBTC

Price x Volume

Volume

Base Symbol

Related Pairs

394,302,278.23

129,625.62

Ethereum Supply Shock Grows As Reserves Decrease, ETH 2.0 Contract Increases

18/10/2021 8:00pm

NEWSBTC

The Ethereum supply shock has been growing as exchange reserves continue to decrease and value staked in ETH 2.0 contract rises. Ethereum Supply Shock: Exchange Reserves Go On Decreasing While ETH 2.0 Staking Contract Grows In Value As pointed out by a CryptoQuant post, ETH exchange reserves have been decreasing while the coins locked in the staking contract have been rising. The “all exchanges reserve” is an Ethereum indicator that highlights the total number of coins stored in wallets of all exchanges. When the value of this metric goes up, it means there is an increase in the supply of ETH on exchanges. Such a trend may show that there is a selling pressure in the market as investors are sending these coins to exchanges for withdrawing to fiat or altcoin purchasing. A decrease, on the other hand, would imply the supply of ETH is going down as investors take their crypto off exchanges for hodling or selling through OTC deals. This behavior may show that buyers feel bullish on the coin’s future. Related Reading | Only In Crypto: A Croissant Lists Potential Bullish Drivers For Bitcoin And Ethereum In Q4 2021 Now, here is a chart that shows the trend in the all exchanges reserve for ETH: The indicator's value looks to be decreasing while ETH 2.0 total value staked is moving up | Source: CryptoQuant As the above graph shows, the Ethereum exchange reserves have been steadily heading downwards since quite some time now. This is despite ETH’s recent sharp increase in price. It seems investors are willing to hold on as they believe the price will appreciate even further. Related Reading | TA: Ethereum Outperforms Bitcoin, What Could Extend Gains Above $4K This is creating a supply shock in the market. An increase in demand from big whales like institutional and retail investors now can blow the price up. In fact, on-chain data suggests institutional investors have already started getting involved in the crypto as 400k ETH exited the crypto exchange Coinbase a few days back. By the way, the chart from before also includes the value currently staked in ETH 2.0. As this contract is seeing a steady increase in the number of coins being locked, it looks likely that some of the supply going off exchanges is going into this contract. This further backs the idea that investors are in Ethereum for the long term. ETH Price At the time of writing, Ethereum’s price floats around $3.8k, up 5% in the last seven days. Over the past month, the crypto has gained 9% in value. The below chart shows the trend in the value of the coin over the last five days. ETH's price has moved rather sideways in the last few days | Source: ETHUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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