Ethereum Breaks 3-Month Downtrend Against Bitcoin As Supply Hits 10-Year Low
Ethereum (CRYPTO: ETH) just did something it hasn’t managed in months. The second-largest cryptocurrency rallied over 12% this week, snapping a three-month losing streak against Bitcoin (CRYPTO: BTC) and pushing past the $3,300 mark for the first time since mid-November.
The move comes as exchange supply drops to levels not seen since 2015, creating what analysts are calling textbook conditions for a major price surge. Whether that materializes depends on a lot more than just shrinking supply, but the setup has people paying attention again.
The Supply Squeeze Nobody Saw Coming
Here’s what’s actually happening with Ethereum supply. Centralized exchanges now hold just 8.7% of circulating ETH, according to Glassnode data. That’s the lowest share since Ethereum launched a decade ago. Over the past seven weeks alone, exchanges have shed 16.4% of their Ethereum holdings.
Where’s it all going? Most of it’s moving into staking, DeFi protocols, layer-2 networks, and private wallets. Digital asset treasuries have been aggressively accumulating too. Tom Lee’s BitMine doubled its ETH purchasing pace over the past two weeks and now plans to stake more than 3.7 million ETH.
When supply leaves exchanges, it typically signals holders are in it for the long haul rather than looking to flip quickly. Fewer tokens available for immediate sale can create conditions for sharp price moves when demand picks up.
ETH/BTC Finally Flips Green
The really interesting part isn’t just Ethereum’s dollar price. It’s how ETH is performing relative to Bitcoin. The ETH/BTC trading pair hit its strongest level since late October this week, breaking above key resistance after …
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