ETH Mega Pump: Will Ether Soar or Sink Like a Stone? 🚀💸

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My dear friends, it appears that Ether’s supply on the crypto exchanges has taken a precipitous plunge, akin to a rather clumsy chap tripping over a rug at the local ballroom. Imagine, if you will, a supply so low that it hasn’t graced our presence since the halcyon days of November 2015! According to the squeaky clean crypto analytics platform Santiment—bless their cotton socks—there are now but a mere 8.97 million Ether available on exchanges.

Santiment, bless their hearts, noted that the Ether is fleeing exchanges with the rapidity of a rabbit pursued by a particularly determined fox. Balances have plummeted 16.4% since January, as investors appear to be stashing their ETH in cold storage wallets, presumably to keep it away from the prying hands of the market, and perhaps in hopes of a brighter tomorrow when prices may play nice. 🌈

You see, when ETH supply dwindles on the exchanges, one often whispers the magical words “supply shock”—a delightful phrase implying that prices might just pop up like toast from an overzealous toaster. However, let’s remember that this price explosion requires demand to be strutting around like it owns the place.

Now, Bitcoin, that sprightly fellow, had a similar escapade back on January 13, where reserves sank to 2.35 million BTC. It was a low not seen since the glorious June of 2018. A mere week later, Bitcoin jetted up like a kite in a windstorm, hitting a whopping $109,000 during the rather entertaining inauguration of the illustrious Mr. Trump!

Many enterprising crypto traders and analysts, possibly still clutching their crystal balls, are envisioning an identical scenario for our friend Ether.

One crypto trader, who goes by the moniker Crypto General—clearly fancying themselves a bit of a military strategist—proclaimed to their legion of 230,800 X followers, “Just a question of time before the big supply shock.” Well, I do hope they are not too invested in their own hype!

Meanwhile, our sage commentator Ted chipped in with a timely observation, predicting that as the ETH supply drops daily, “buyers will soon compete, leading to bidding wars.” Sounds just like Wimbledon, doesn’t it? 🎾

Not to be outdone, trader Naber—who has apparently entered the race of melodramatic predictions—was overheard saying the largest ETH accumulation is occurring, with sights set on a price range of $8,000 to $10,000. Even at the more modest end of $8,000, that would represent a jolly 64% increase from Ether’s all-time high of $4,878, achieved in the halcyon November days of 2021.

But, alas, while the dwindling supply has traders dancing a jig, other signals have thrown a rather gloomy shadow over the proceedings. Ether is currently performing against Bitcoin like a tortoise in a marathon, at its lowest in five years, with the perspicacious Daan Crypto Trades suggesting that we shan’t see it near its highs for the foreseeable future.

Alas and alack, at present, Ether finds itself treading water at $1,971, down a hearty 26% over the past month, according to the ever-reliable CoinMarketCap data. Meanwhile, spot Ether ETFs have had an appalling 12 consecutive days of outflows, totaling a staggering $370.6 million, which you must admit is rather sobering news.

“This has been one brutal downtrend,” commented our friend Daan, possibly while adjusting his monocle.

Lastly, Scott Melker, jestingly dubbed “The Wolf of All Streets,” weighed in with the philosophical quandary: “Either Ethereum bounces here and this is a generational bottom, or it’s over.” A rather dramatic ultimatum, wouldn’t you agree?

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2025-03-21 09:14