2025-05-16 07:30:42 by Bitcoinist

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Although Ethereum (ETH) is still trading nearly 50% below its all-time high (ATH) of $4,878, signs are emerging that the second-largest cryptocurrency by market capitalization may soon experience a “supply shock” due to dwindling reserves on major cryptocurrency exchanges like Binance. According to a recent CryptoQuant Quicktake post by on-chain analyst Amr Taha, ETH reserves on Binance have been steadily falling since April 14. Taha noted that the exchange’s ETH reserves declined from slightly less than 4.2 million to 3.9 million by May 14 – a drop of around 300,000 ETH in just one month. Source: CryptoQuantSuch a sharp decrease over a relatively short period has reignited discussions around ETH’s supply scarcity narrative. When fewer coins are held on exchanges, the selling pressure tends to decrease. This reduction can lead to higher prices if demand remains constant, as the available ETH becomes more limited. Taha proposed two possible reasons behind the drop in Binance’s ETH reserves. First, he suggested that investors may be transferring ETH to cold wallets or deploying it in decentralized finance (DeFi) protocols for security or yield generation. Second, institutional investors may be withdrawing large amounts of ETH for purposes such as over-the-counter (OTC) deals, private investments, or staking. These activities reduce exchange reserves without necessarily creating selling pressure. Taha concluded: The 300,000 ETH decline in Binance’s reserves suggests a notable shift in investor behavior – possibly toward long-term holding, staking, or institutional accumulation. Although this may alleviate immediate selling pressure, traders should closely observe this trend and its interaction with overall market demand. Is ETH Preparing To Rally? Additional data points suggest that ETH may be gearing up for a major rally in the short to medium term. In a separate CryptoQuant post, contributor BlitzzTrading analyzed the behavior of ETH whales. For context, ETH whales are typically wallet addresses that hold more than 10,000 ETH. BlitzzTrading shared the following chart, illustrating that the last major correction in ETH occurred after whales took profits when the price approached $4,000. Source: CryptoQuantCurrently, these whales do not appear to be engaging in significant profit-taking. However, BlitzzTrading advised closely monitoring this metric, as a spike in whale selling could signal a potential correction once ETH enters overbought territory. Several analysts have set ambitious price targets for Ethereum in this market cycle. For example, crypto analyst Ted Pillows recently predicted that ETH could reach $12,000 later this year. Pillows also pointed out that ETH appears to be following the Wyckoff Accumulation pattern – a classic market structure that often precedes significant price increases. He believes that if current momentum holds, ETH could reclaim the $4,000 level by Q3 2025. Ethereum’s fundamentals are also strengthening. The network recently completed the highly anticipated Pectra upgrade, which is expected to enhance performance and security. At press time, ETH is trading at $2,541, down 2.2% over the past 24 hours. ETH trades at $2,541 on the daily chart | Source: ETHUSDT on TradingView.comFeatured Image from Unsplash.com, charts from CryptoQuant and TradingView.com Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers. Sign Up for Our Newsletter! For updates and exclusive offers enter your email. Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.