SNEAK PEEK:

• In the past few months, large wallet holders have moderated their investments, giving way to smaller wallets taking over.
• On Friday, Ethereum’s price plummeted by 4.75%, but amazingly enough, has recovered and is back up to where it was a month and- a half ago!
• Over the previous 3-year period, a staggering 16% of all ETH in circulation has shifted into self-managed wallets.

Ethereum had its lowest exchange supply in nearly five years. In addition to the recent FTX collapse, Ethereum’s promising technology and features have been attractive to users who prefer to self-custody their own funds. This low exchange supply of ETH helps reduce the future selloff probability, increasing long-term confidence in this asset.

Ethereum’s supply on exchanges is currently at its lowest in years, and this is incredibly good news for ETH holders. As more of the supply is transferred into self-custody wallets, investors become less exposed to price manipulation as a result of large exchange dumps.

With its current standing as the second-largest cryptocurrency by market cap, Ethereum’s self-custody solutions are poised to make waves in the world of digital asset management as more users move away from centralized custodians and into Ethereum’s self-custody.

In the last couple of years, Ethereum has seen an increase in self-custody solutions. Users are now opting to store their digital assets directly on the blockchain instead of relying on a third-party custodian. This shift towards self-custody has been driven by concerns over security and privacy, as well as convenience and cost savings.

Ethereum price in consolidation

Ethereum’s low exchange supply and growing self-custody trends indicate a healthy and promising future for this digital asset. By allowing users to store their funds in their own wallets more securely and cost-effectively, Ethereum is setting itself up for long-term success. As the demand for self-custody solutions continues to rise, Ethereum’s future looks brighter than ever.

With its low exchange supply, increased self-custody solutions, and promising features, Ethereum is well-positioned to continue dominating the digital asset space in the years to come. With a bright future ahead of it, now is an ideal time for investors to consider investing in Ethereum. 

The demand for ETH is only expected to grow, so there’s no better time than now to get in on this digital asset. Investing in Ethereum can be an excellent way to diversify your portfolio and benefit from its long-term prospects.

Recent Ethereum price analysis

Recent Ethereum price movement shows ETH fell sharply on March 3 from a high of $1,649.28 to a low of $1,558, forming a double-bottom formation. This could indicate an end to the recent bearish trend and be a sign of a bullish reversal in the near future.

Looking at the weekly timeframe, ETH is down by 2.11 following the recent dip. Over the past few weeks, Ethereum has been consolidating in a range between $1,500 and $1,600. This indicates that the bulls are in control of price action and may push ETHs higher over the coming weeks.

On the daily, 4-hour, and hourly timeframes, ETH is trading in a consolidation manner, with bulls defending the key support level of $1,500. As long as buyers are able to defend this level, Ethereum may see further bullish upside in the near future.

The technical indicators, momentum oscillators, and retracement levels all indicate that ETH is likely to remain range bound at its current level of $1,580. However, if bulls are able to break above the current resistance level of $1,600, buyers may gain more control over price action, and Ethereum could see further upside in the near future.

The key support levels have been established at the Fibonacci levels of $1,550 and $1,530. If these two key levels are breached in the near future, buyers may be at risk of further losses in Ethereum’s price.

The Ichimoku cloud and the Elliott wave theory both suggest that ETH is in a bullish trend and may rise further if buyers are able to defend the key support levels. The relative strength index (RSI) is also currently trending at the neutral level, with upside potential, indicating that buyers may capture the market in the next few hours.

As of now, Ethereum is trading at $1,560.87 and is facing resistance at the $1,600 mark. If buyers are able to break past this level, then ETH may see further upside in the near future. As Ethereum’s low exchange supply continues to increase, so too does buyer confidence in this digital asset. With its promising features and long-term potential, now is an ideal time for investors to consider investing in Ethereum.

Disclaimer: In good faith, we disclose our thoughts and opinions in our price analysis and all the facts we give. Each reader is responsible for his or her investigation. Reader discretion is advised before taking any action.

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• Source: https://investorbites.com/ethereums-low-exchange-supply-and-growing-self-custody-trends-signal-potential-buying-spree/