Ethereum's Q4 Supply Shock May Not Be Enough to Break Historical Pattern

The Ethereum network has seen a significant exit of $350 million worth of ETH from exchanges over the past 96 hours, as it enters the fourth quarter. This trend is accelerating, with only 6.06 million ETH currently on exchanges, down from 22.9 million at the June 2020 peak.

The staking ratio for Ethereum has reached a new all-time high, while Bitmine added 27,180 ETH last week. However, this may not be enough to help Ethereum break its historical pattern of underperforming Bitcoin in Q4.

Bitcoin has historically outperformed Ethereum in the fourth quarter, with an average gain of over 77% compared to Ethereum's 18%. This trend is expected to continue in Q4, especially given the current macro setup and elevated volatility.