Rebound anticipation builds as Ethereum outpaces altcoins, with exchange supply dropping to its lowest level since its inception.
Ethereum has experienced notable price fluctuations, moving within the $2,600 to $2,800 range. Data from CoinGecko shows a 1.0% decline over the past 24 hours, aligning with a broader 19.3% decrease over the last 30 days.
Despite this downward trend, recent market indicators suggest Ethereum may be showing early signs of a potential rebound.
Exchange Outflows and Social Dominance
Market intelligence platform Santiment has highlighted key movements within Ethereum’s ecosystem. The platform reports that Ethereum’s market value has rebounded to $2,745, surpassing most altcoins at the start of the week.
Additionally, Santiment noted that exchange outflows have reached significant levels, with only 6.38% of Ethereum’s total supply remaining on exchanges. This marks the lowest level since its inception, suggesting a growing preference for self-custody solutions.
Over the past two weeks, 0.83% of Ethereum’s total supply has moved off exchanges, reinforcing the trend of reduced exchange-held reserves.
Ethereum market chart by Santiment
Furthermore, community discussions around Ethereum have also increased. Santiment data reveals that Ethereum’s social dominance has climbed to 9.2%, with nearly 1 in 10 crypto-related discussions focusing on the asset.
Caution Despite Potential Catalysts
In a separate analysis, market researcher Markus Thielen pointed out that Ethereum presently displays greater volatility compared to Bitcoin. However, he noted that Ethereum’s price action had created a high-risk, high-reward environment.
In the past few weeks, market sentiment has been largely negative, with many short positions being opened against Ethereum. Amid the prevailing pessimism, Thielen pointed to potential catalysts that could influence Ethereum’s trajectory.
Upcoming events, such as potential ETF approvals, major network upgrades, and new trading launches, may impact market dynamics.
Additionally, the broader crypto market has witnessed declining momentum in other ecosystems. Projects like Solana have faced challenges, including issues related to the TRUMP meme coin collapse and a slowdown in new coin issuances through platforms like Pump.fun.
Analysts believe these developments create a perfect rebound opportunity after lagging behind Bitcoin for extended months.
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