Ethereum Supply Shock Fears Build as Price Fluctuates Around $2,489

Ethereum's price has been fluctuating around $2,489 over the past 24 hours after experiencing a sharp pullback from above $2,600 earlier in the week. Despite this volatility, ETH's exchange supply ratio has fallen to its lowest levels since 2024, according to CryptoQuant, indicating reduced liquidity on centralized exchanges.

This development is seen as a bullish signal for crypto and DeFi token flows, suggesting that investors are holding onto their assets rather than selling them. The short sellers have absorbed $34.21 million of the past 24 hours' $46.34 million in ETH liquidations, further supporting this view.

The Supertrend support level at $2,481 has held strong through a recent short squeeze, and Ethereum's price prediction remains bullish above this threshold. While it is uncertain whether ETH can clear its target of $2,615, the current trend suggests that investors are optimistic about the asset's future prospects.