Analysis: Whales "swallowed" $3 billion of ETH in a few weeks, Ethereum may soon break through its historical high

On January 15, the price of Ethereum (ETH) surged again by more than 9% on the daily chart, breaking through $1,200 in another attempt to break through its all-time high. At press time, ETH is trading around $1,200 with a market cap of $136 billion. As the price of Ethereum soars, the supply and liquidity of Ethereum are rapidly drying up.

Cryptocurrency analyst Alex Saunders mentioned that the demand for ETH is growing very fast. He cited data from CryptoQuant, where he mentioned that the ETH reserves of exchanges dropped by 20% in a few hours. The total reserves of exchanges dropped sharply from 10 million ETH to 8 million. If it continues at this rate, the ETH supply and liquidity of exchanges may soon dry up within the next 48 hours.

“Exchanges could run out of ETH in 48 hours. Demand for ETH is skyrocketing. Exchange reserves dropped 20% from 10m ETH to 8m in the last few hours. With long term targets of $5k, $10k, and $20k, I suspect many HODLers will sell their ETH in the $1-2k range.”

In this case, the price of Ethereum could see a crazy rally that would take it above $1,500 and even higher to $2,000 or even higher. Lark Davis, another cryptocurrency analyst, noted that Ethereum whales have been hoarding a lot of coins over the past few weeks, as reported by CoinGape. Whales have bought nearly $3 billion worth of Ethereum, or about 20% of the supply on exchanges.

#Ethereum whales have sucked up ~$3 billion worth of ETH in the last few days and withdrawn it from exchanges. That’s about 20% of the exchange supply. Get ready!!! This could be the catalyst for a breakout to ATH!

Clearly, the big fish are preparing for the next leg of the rally, this time pushing ETH to new all-time highs. Ethereum prices have surged more than 60% this year so far. Glassnode metrics show that the ETH supply on exchanges is at its lowest level since July 2018. In addition, only 7% of the circulating ETH supply is currently on exchanges. In addition, according to Glassnode data, the number of addresses holding more than 10,000+ ETH has reached a 1-year high.