On-chain data from Ethereum shows that the supply of ETH on exchanges has fallen to an all-time low, highlighting a reduction in selling pressure and an increase in long-term holdings. As a result, the price of ETH rose 7% today, breaking the $2,550 barrier, with a market capitalization exceeding $300 billion. The overall market sentiment for ETH has become exceptionally optimistic, rising 58% in the past month.

ETH supply on exchanges hits a decade low

Blockchain analytics company Santiment shared an important statistic, indicating that the amount of ETH held on exchanges is currently less than 4.9% of its total supply. This is the lowest percentage of ETH held by exchanges since the inception of ETH over a decade ago.

Additionally, Santiment also noted that over the past decade, the supply of ETH held by exchanges has significantly decreased by 15.3 million ETH. This highlights the growing preference among investors for long-term holdings and decentralized storage options.

While ETH has risen 60% in the past month, the supply of ETH on exchanges has also rapidly decreased. Cryptocurrency analyst Ali Martinez cited data from Glassnode, explaining that nearly 1 million ETH have been withdrawn from exchanges in the past month.

A decrease in the amount of ETH held on exchanges usually signals a decline in potential selling pressure. This will also ensure that the ETH price remains more stable and maintains a long-term bullish sentiment. Veteran market participants like Arthur Hayes believe that Ethereum will lead the altcoin market this summer.

Will ETH's upward momentum continue from here?

The ETH price once fell below $2,400 but then showed strong momentum again, rising 8.83% in the last 24 hours, with the current trading price at $2,573 and a market cap of $310 billion. According to Coinglass data, the open interest in Ethereum futures increased by 7%, exceeding $31.24 billion, highlighting strong bullish sentiment among traders. On the other hand, the 24-hour liquidation amount surged to $91.6 million, with $59.6 million being short liquidations.

Famous analyst Crypto Patel also emphasized the formation of a 'golden cross' pattern on the 12-hour chart of ETH. A golden cross refers to the phenomenon where the short-term moving average crosses above the long-term moving average. Therefore, the analyst currently predicts that the target price for ETH will be between $3,800 and $5,000, or even higher.

If the ETH price stays above the key resistance level of $2,500, bulls could continue to push the ETH price up to $3,000 or even higher in the short term.