Ether supply on exchanges is now at a 9-year low: specifically 18.95 million ETH as of February 18, at the time of writing. This suggests investors are now moving $ETH into cold storage, presumably for long-term HODLing purposes.
If the ecosystem is overall looking to hold, rather than trade Ether, the historic all-time lows supply significantly increases the odds of ‘supply shock’ occurring, which would inevitably power an $ETH bull run and skyrocket the price.
Basic economics dictate that a supply shock happens when the demand of an asset exceeds the supply, creating a significant gap. This ultimately results in an increase in price.
$ETH has not been able to sustain the $4K mark so far, trading in the range of $4.1K to $2.2K since the last year. However, analysts believe this supply shock could just be what it needs.
Add to this the possibility of $ETH staking, which could tighten supply and boost investor confidence in Ethereum as a long-term investment.
