Ethereum Supply Squeeze Hits 10-Year Low – Will This Trigger a Price Surge?

Only 8.97 million ETH is open on trade sites; Ethereum’s exchange supply has reached a 10-year minimum. This drop indicates a possible lack of supply, which could lessen sales pressure and push prices up. Ethereum’s limited supply and growing institutional demand might combine to spark a price explosion, according to analysts’ guesses. Investors are wondering in the weeks ahead whether this supply shock will drive prices above important resistance levels since ETH is presently floating around $1,986.

Ethereum Supply Squeeze and Market Impact

The sharp decline in Ethereum supply indicates that investors are moving ETH into cold storage, therefore reducing current sales pressure. Traditionally, such patterns have come before big price increases, given that smaller, accessible liquidity usually causes price surges. With more than 30 million ETH locked in the Ethereum staking contract, the current supply contraction is driven by staking demand. The available market supply of ETH keeps lowering as more long-term holders and institutions accumulate, therefore bolstering a positive perspective.

Whether demand surpasses the still existing selling pressure will now affect the Ethereum blockchain price trend. ETH is range around $1,986 with powerful resistance at about $2,000. If buyers come in, Ethereum might rise above this negotiated price and aim for $2,100 in the near term. A lack of momentum might, though, cause a pullback to $1,950. Traders are carefully watching whale accumulation and volume trends to assess the power of Ethereum’s next move as the supply squeeze worsens. Let’s take a look at Ethereum price prediction and explore the current Ethereum blockchain price trend.

Ethereum Price Prediction

Recovering from recent support around $1,940, Ethereum (ETH) is traded at $1,985.90. The price is testing vital resistance near $1,990-$2,000; any breakout would drive ETH toward $2,020-$2,050. If rejection happens, though, ETH could revisit stronger support levels somewhere around $1,960-$1,950. The ascending wedge pattern points to possible clumsiness, so traders are carefully observing price fluctuations to validate the following trend.

Chart 1: Analysed by vallijat007, published on TradingView, March 22, 2025

RSI is currently at 48 indicates flat momentum. The MACD, meanwhile, shows some slight bullishness, suggesting that if buyers keep pressure, prices could go still higher. If momentum flags, then ETH might have to drop once more before trying a more robust rebound. Whether ETH can keep its increases or encounter another pullback, traders should keep watch.

Ethereum Supply Crunch: Will Low Exchange Reserves Trigger a Price Surge?

Given that people transfer ETH into cold storage and staking and exchange reserves are at a 10-year minimum, the Ethereum supply squeeze is still driving speculation. Reduced liquidity could help push price swings in the next few weeks; there are more than 30 million ETH locked. If there is more demand than selling pressure, ETH could push past the $2,000 resistance level to $2,100-$2,150. Rejection at this level could nevertheless result in prices slipping toward $1,950. To estimate how Ethereum will next significantly change, traders are closely monitoring institutional inflows and whale accumulation.