Ethereum Supply Hits Record Low as Tom Lee Sees ETH Above $5,000

• Ethereum Price remains in focus as Ethereum Supply on exchanges falls, while Tom Lee sees ETH reaching a new Ethereum all time high, supporting a bullish ETH forecast
• Ethereum Supply on tracked exchanges has dropped to just 3.49%, leaving less ETH immediately available for trading or selling
• Tom Lee expects Ethereum to reach $3,000 in the near term and move well above $5,000, while calling for a new all-time high this year

The Ethereum price outlook is currently gaining steam as the amount of ETH sitting in exchanges has hit a new record low. A new Santiment report outlines how only 3.49% of Ethereum’s total supply was held on tracked exchanges as of September 24. Nearly 1.16% of the Ethereum supply was documented moving off exchanges since June 1. At the same time, BitMine Chairman Tom Lee shared how the Ethereum price has the potential to hit a new all-time high this year, with $3,000 in the near term and well above $5,000 later, indicative of Ethereum’s brighter future momentum.

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Ethereum Supply Keeps Moving Away From Exchanges

Santiment’s latest Ethereum supply data shows that only a small share of ETH supply sits on tracked exchanges. At 3.49%, the amount held on exchanges has fallen to one of the lowest levels Santiment has recorded, leaving less ETH immediately available for sale on those exchanges.

However, there are multiple reasons indicative of why Ethereum supply is low on exchanges. Firstly, investors who would like to self-custody their coins may have moved their ETH holdings back into their wallets. They can also move coins to earn yields by staking them elsewhere. However, it should be noted that this development should not be considered as a sole reason for ETH future forecast predictions. The process does mean there is less ETH immediately available on tracked exchanges, but it does not confirm lower overall selling pressure.

“Ethereum keeps disappearing from exchanges. Just 3.49% of $ETH supply now sits on tracked exchanges, with another 1.16% of total supply moving off since June 1st. Exchange balances were already at their lowest levels since Ethereum’s earliest years this summer. Fewer coins on exchanges means fewer coins sitting one click away from being sold. It doesn’t guarantee higher prices, but it reduces the pool of ETH readily available to hit the market during the next wave of selling.”

Fewer coins sitting on exchanges do matter in a certain way.

If the Ethereum demand continues to surge, then it may end up impacting the Ethereum price in a particular manner.

“Long-term conviction is keeping more ETH away from exchange order books. Even large treasury holders are increasingly staking their coins, with BitMine alone reporting more than 5M ETH staked earlier this month. If demand strengthens while available exchange supply stays this scarce, buyers have fewer immediately available coins to compete for.”

In addition to this, investors using Ethereum for staking are also playing a pivotal role in shaping its narrative.

BitMine Chairman Tom Lee Calls For A New Ethereum All-Time High

BitMine’s Tom Lee has also shared a new price path for ETH in the process. Lee is of the view that Ethereum’s price may hit $3,000 in the near future.

Adding to this $3K prediction, Lee later shared that the asset may very well move well above the $5K mark. He later called for a new Ethereum all-time high this year, bolstering the ETH price forecast momentum.

Per CoinCodex ETH Stats, Ethereum may hit above the $5K mark by 2030.

However, crypto markets usually volatility. Hence, user discretion becomes imperative before making any investment-related decisions.

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