The rapid drawdown of Ethereum from exchanges raises alarms about a potential supply shock. With fewer coins available for trading, even modest demand could fuel significant price swings.
As the Ethereum price stabilizes above $3,950, its viral ecosystem is also gaining attention. Projects like Remittix (RTX), a PayFi project offering borderless payments across over 30 countries, are becoming must-watch tokens this cycle.
Ethereum Exchange Supply Falls Sharply
A recent CryptoQuant report indicates that the decreasing ETH balance on exchanges is attributable to long-term asset holders increasingly staking their assets or moving them into self-custodial wallets.
Over less than three years, exchange balances have declined by over 11 million ETH. Approximately 15.9 million ETH now resides on centralized exchanges, a significant decrease from 27 million ETH two years ago. This represents one of the sharpest liquidity contractions in the asset's history.
This situation has created what analysts refer to as an illiquid market structure, suggesting that price changes could be significant if buying pressure increases. Ethereum stakers continue to actively participate, locking 32.8 million ETH within validator contracts, which accounts for 30% of the total supply.
The combination of shifting to lower exchange reserves and a rising outlook for staking participation may support price momentum. Analysts believe that macroeconomic catalysts or the influx of institutional capital are the next key forces expected to impact the market.
Ethereum ETFs Record Heavy Outflows as Investors Reposition
Despite strengthening fundamentals on-chain, Ethereum ETFs experienced notable weakness this week. On October 23, spot ETH ETFs recorded net outflows totaling $128 million, according to SoSoValue, marking the eighth negative flow day in the past eleven sessions.
Fidelity’s Ethereum Fund (FETH) saw the largest withdrawals with $77 million, while BlackRock’s ETHA experienced $23 million in exits. Grayscale’s ETHE trust also posted over $8.8 million in outflows. This synchronized retreat suggests institutions are temporarily rotating toward other assets amid cautious macroeconomic sentiment.
Since their launch, cumulative inflows for Ethereum ETFs still exceed $14.4 billion. Given Ethereum's tighter supply and higher staking yields, analysts believe that ETF outflows will have less long-term impact on Ethereum compared to the on-chain scarcity narrative.
Ethereum Price Flips Positive as the Market Awaits CPI Data
Ethereum is currently trading at approximately $3,950, showing a daily increase of about 2.48%. This rise follows a recent crypto market crash that pushed the price below $3,500. With the falling exchange supply, ETH holders appear to be adopting a long-term investment strategy.
Meanwhile, the markets are anticipating today's key US Consumer Price Index (CPI) reading. A weaker-than-expected print could lead to a return of risk appetite, potentially pushing the ETH price above the psychological level of $4,000.
Any upside surprise in inflation could stall ETH at support near $3,745. Technical indicators are neutral, with the Relative Strength Index (RSI) near 46. ETH's next price movement is likely to be determined by macroeconomic outcomes rather than flows in the derivatives market.
Attention Turns to Remittix Amid Ethereum's Wait-and-Play Game
While Ethereum may need to wait for clearer macroeconomic and institutional support, Remittix (RTX) is actively driving blockchain forward with its smooth cross-border payment solutions, building a bridge between decentralized finance and the real world.
Remittix is a crypto-to-fiat payment system built on Ethereum and other leading blockchains. It allows users to send cryptocurrencies directly to bank accounts in over 30 countries without intermediaries.
Key Features of Remittix (RTX):
- •Over 40 digital assets are supported at launch.
- •The team is fully KYC'd and holds the #1 ranking on CertiK Skynet.
- •Confirmed listings are scheduled for BitMart and LBank.
- •An integrated wallet beta is currently in testing.
Additionally, Remittix offers a 15% USDT referral program and a $250,000 giveaway, making it unsurprising that the token has gone viral among early investors. These investors have accumulated over 681 million RTX tokens, valued at $27.7 million, ahead of its upcoming CEX debut.