According to crypto analyst Ali Martinez, Ethereum has managed to regain a key support level that could open the doors to a rally to $5,000. The analyst states that while Ethereum (ETH) is preparing for an explosive price move as it lacks any resistance levels, the number of tokens available in known cryptocurrency exchange wallets has dropped. cryptocoin.com We have compiled Ali Martinez’s Ethereum analysis for you.
“Ethereum faces supply shock”
Analyst Ali Martinez states that the circulating supply of Ethereum has fallen at an exponential rate and makes the following assessment:
Since the ETH 2.0 deposit agreement went live late last year, approximately 7.7 million ETH has been locked by more than 46,800 unique depositors. 7.7 million ETH equates to approximately 28 billion dollars.”
Ali Martinez says that the implementation of EIP-1559 at the London Hard Fork on August 5 also reduced the number of tokens in circulation, and more than 303,000 ETH worth approximately $1.1 billion have been burned to date. According to the analyst’s calculations, the combination of ETH invested in the staking contract and the supply burned through EIP-1559 equates to approximately 8 million ETH worth $28.8 billion removed from circulation.
Analyst: These Levels Are Breakable!
Crypto analyst Ali Martinez states that the large supply decrease seen in the last few months has also affected crypto money exchanges and shares the data:
The number of tokens available on trade platforms has dropped to 19.45 million Ethereum (ETH), a three-year low. Meanwhile, the supply outside of these financial assets reached an all-time high of 98.31 million Ethereum (ETH).
According to Ali Martinez, the increasing number of tokens being withdrawn from circulation, together with the shortage of supply in known cryptocurrency exchange wallets, paints a positive picture for Ethereum’s future price increase, and technically, the decline of ETH available for sale, the downward price of Ethereum. puts a limit on its potential.
“Ethereum has no supply barriers”
The crypto analyst says that the transaction history shows that Ethereum is sitting on stable support, giving the following information:
According to IntoTheBlock’s Price In/Out of Money (IOMAP) model, more than 580,000 addresses have previously purchased 10 million ETH for between $3,430 and $3,540. ETH will likely continue to rise towards $5,000 as long as this demand barrier remains, as there is no significant supply wall ahead.
Saying that the significant reduction of the downward pressure behind Ethereum almost invalidates a potential pessimistic view, Ali Martinez states that the crypto money market is characterized by high volatility and adds:
Only a sustained daily candlestick below the $3,430 to $3,540 range could lead to a sell-off towards $3,000 as short-term traders will likely try to prevent their investments from going “Out of Money”.
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