Ethereum Price Tracks Global Liquidity As ETH Exchange Reserves Decline in Steep Drop

Ethereum price tracks global liquidity, a bullish indicator

ETH exchange reserves decline in a steep drop

These actions point to a steady ETH supply shock and a sharp price surge.

The pioneer altcoin Ethereum (ETH) has been holding strong in the $4,400 price range, despite the heavy fall in BTC prices. At the moment, analysts notice how Ethereum price tracks global liquidity as ETH exchange reserves decline in a steep drop. This is very bullish news for the price of ETH, and analysts are preparing to see a sharp rise in ETH prices, caused by a sudden supply shock

Ethereum Price Tracks Global Liquidity

The crypto market is always driven by both external and internal factors. For instance, geopolitical elements are a huge external indicator that could drive or drop crypto prices. Menahwiel, internal factors like blockchain news and web3 partnerships could result in crypto prices rising or falling. One of the most interesting external factors that affects crypto market prices is the popular M2 money supply indicator

To highlight, the price of the pioneer crypto asset Bitcoin (BTC), has been known to follow the M2 money supply indicator in the past. In fact, it did so multiple times in this bull cycle alone. In many instances, reputed analysts have noticed that the price of BTC has always followed the bullish pump pattern of the M2 money supply, albeit just a few days apart, between 21-22 days usually

What analysts are noticing now is a similar bullish pattern being drawn by the pioneer altcoin Ethereum (ETH). As we can see from the post above, this reputed crypto analyst believes that ETH is tracking global liquidity and believes that the ETH accumulation phase is complete. He also remarks that the bull run is very much alive, despite the price of Bitcoin’s steady decline.

The analyst also mentions how global liquidity is expanding higher, and ETH is mirroring the move. This confirms that this reaction isn’t hopium, but rather macro. Claiming that ETH will soon surge to targets above $6,000, the analyst concludes his post with bullish expectations. According to several other analysts, the price of ETH is also mirroring BTC pump pattern from the previous bull cycle, another bullish indicator

ETH Exchange Reserves Decline in Steep Drop

At the same time, another bullish indicator supporting an explosive ETH rally comes from the ETH exchange reserves. As we can see from the post above, the ETH exchange reserves look like they’re falling off a cliff, according to the post. The chart in the post shows the steady decline of ETH supply in crypto exchanges, meaning a supply shock will likely send the price of ETH to new ATH prices