Ethereum Faces Supply Shock Amid Whale Accumulation, Is Altcoin Season Next?
The post Ethereum Faces Supply Shock Amid Whale Accumulation, Is Altcoin Season Next? appeared on BitcoinEthereumNews.com.
Ethereum is facing a supply shock as the token balance on exchanges plunges to multi-year lows. This falling supply coincides with rapid whale and institutional accumulation, signalling high demand. Meanwhile, a key on-chain metric suggests that an altcoin season, aka alt season, could be underway. Ethereum (ETH) price faces low volatility today, June 2, as it oscillates between a daily high of $2,544 and a daily low of $2,483. Ethereum was the only top ten altcoin, besides BNB, to record the least losses last week amid surging inflows to spot ETH ETFs. Ethereum Faces Supply Shock As Demand Soars The supply of Ethereum available on exchanges has declined drastically, and this has created concerns about a possible supply shock. Data from Glassnode shows that the available ETH exchange balance has fallen to its lowest level in seven years. ETH Supply on Exchanges Analyst CarlMoon opines that the falling supply is bullish for Ethereum price, and it could rally to a fresh all-time high before 2025 ends. He noted, “Supply shock incoming for Ethereum. $ETH could easily hit $5,000 this year.” The declining supply coincides with rapid accumulation by Ethereum whales holding between 10,000 and 100,000 ETH tokens. On-chain analytics platform Santiment shows that these addresses have increased their holdings from 25.23 million to 26.5 million within a two-week period. This accumulation history shows that these whales have purchased 1.27 million ETH tokens since May 14. These addresses now hold the largest amount of ETH since late January 2024. Ethereum Whale Supply During the two weeks that these whales bought 1.27 million ETH tokens, spot Ethereum ETFs surpassed $500 million in inflows per SoSoValue data. Hence, as demand from whales and institutions surges on the back of weakening demand, the result is a supply shock that could affect Ethereum’s price performance.…
Filed under: News - @ June 2, 2025 9:20 pm