Ethereum News: Potential Strengthening of ETH Momentum as Supply Dries Up on Exchanges

Recent developments in the Ethereum (ETH) market suggest a potential upswing in its momentum. Here’s a closer look at the key details and analysis.

Ethereum Supply Dries Up on Exchanges as Leverage Spikes—Bullish Signs for ETH?

On-chain data reveals that ETH’s exchange reserve has dropped to its lowest level this year, standing at 18.32 million ETH, a 7% decline from its year-to-date peak. This suggests traders are moving their holdings off exchanges for long-term storage, staking, or spot ETH ETFs, indicating potential further strengthening of ETH’s momentum.

Ethereum Price Analysis: What’s Ahead for ETH After Reclaiming $2K?

Ethereum is attempting to recover from months of bearish pressure. On the daily chart, ETH has bounced from the $1,900 support zone and is pushing toward the $2,200 resistance area. However, it remains below the 200-day moving average of $2,900. The RSI is climbing but hasn’t entered overbought territory. Unless ETH breaks above $2,400 and holds, the downtrend remains intact, with $1,900 and $1,600 as key supports to watch. The 4-hour chart shows Ethereum forming an ascending channel.

US Lifts Tornado Cash Sanction, Despite Laundering Concerns

Under Donald Trump’s administration, the US Treasury Department has lifted sanctions against Tornado Cash. This move is seen as a major win for decentralization, a CORE tenet of blockchain technology. Tornado Cash, an open-source, non-custodial crypto mixer, gives investors financial freedom by obscuring their transaction trails and blocking centralized authorities from monitoring and possibly controlling crypto activities. However, it has also enabled hackers, including those from the North Korea-linked Lazarus Group, to launder profits. Despite these concerns, the lifting of sanctions is a boon for crypto investors who value financial freedom.

Ethereum Burn Rate Hits All-Time Low

Ethereum network activity has hit a new low, with just 53.07 ETH (worth approximately $106,000) burned on Saturday, marking the lowest daily burn since the introduction of its fee-burning mechanism under EIP-1559. This decline points to a sharp reduction in demand for Ethereum’s blockspace. The EIP-1559 upgrade, implemented in 2021, aimed to simplify transaction fees and reduce ETH supply by burning the base fee in each transaction. However, current network conditions suggest otherwise, with Ethereum’s supply now expected to grow by 0.76% annually based on recent data. The low burn rate aligns with falling on-chain activity.