Ethereum Surges to $2,800 as Supply on Exchanges Drops 16.4%

Ethereum (ETH) has recently surged to $2,800, marking a significant milestone in its price trajectory. This surge is accompanied by a notable decrease in the supply of ETH on exchanges, which has dropped to a 10-year low. According to data, the amount of ETH held on exchanges has decreased by 16.4% over the past seven weeks, reaching 8.97 million ETH. This reduction indicates that investors are moving their ETH to cold wallets, staking platforms, and decentralized finance (DeFi) protocols for longer-term holding, which could lead to a supply scarcity and potentially drive up the price.

The current market conditions suggest that Ethereum is poised for a bullish run. The critical resistance level of $2,000 has been a focal point, with buyers briefly pushing ETH past this level. Analysts believe that if Ethereum can maintain its position above $2,000, it could see further gains, potentially reaching $2,600 and beyond. Technical patterns, such as the Falling Wedge, a bullish reversal pattern, also support this optimistic outlook. If Ethereum continues to show bullish momentum and breaks through the $2,600 resistance level, it could be on track for a sustained upward movement.

Institutional investment is another factor contributing to Ethereum's bullish momentum. Large capital flows from institutional investors are influencing Ethereum's price. Experts monitoring the Continuous Linked Settlement (CLS) system, which handles over $6.5 trillion in transactions daily, suggest that Ethereum is approaching a significant liquidity event. Financial expert David Perk notes that Ethereum's value is aligning with zones of CLS liquidity, which could push ETH towards $2,600 in the coming months. This perspective aligns with other technical signals, further strengthening the argument for a bullish continuation.

With the supply of Ethereum on exchanges at historic lows, key technical breakouts emerging, and increasing institutional investments, the continuation of Ethereum's bullish momentum is expected. If ETH remains above $2,000 and reclaims $2,600, an advance toward $2,800 and beyond becomes likely. While temporary fluctuations are always a factor, Ethereum is setting itself up for a significant surge. Investors should closely monitor resistance points and institutional actions, as these will play a crucial role in Ethereum's next major movement.