- Ethereum exchange reserves have dropped to their lowest in seven years, signaling a potential supply shock that could trigger a major price rally, especially with growing institutional interest.
- Meanwhile, Cardano is testing key resistance levels near $1, poised for a possible breakout as BlackRock pushes for an Ethereum staking ETF approval that could further boost the market.
Ethereum Exchange Reserves Hit Seven-Year Low
Ethereum could be gearing up for a dramatic move, as new data shows ETH exchange balances have dropped to their lowest levels since 2018. According to crypto analyst Dan Gambardello, this decline signals a potential supply shock, setting the stage for a major price rally if demand spikes. With fewer coins available on exchanges, investors may soon face scarcity, a condition that historically precedes rapid price surges.
Institutional activity is believed to be fueling the drop in ETH supply. Both retail and large investors are consistently withdrawing their ETH, shrinking the available pool for trading. “Ethereum is about — almost no one sees it, but we do. Institutions are here for Ethereum,” Gambardello stated, highlighting ETH’s rising appeal as a treasury asset and inflation hedge.
BlackRock Pushes for ETH Staking ETF Approval
In a bold move, investment giant BlackRock is reportedly applying pressure on the U.S. Securities and Exchange Commission (SEC) to approve an Ethereum staking ETF within two weeks. Such a decision could unlock massive institutional capital and validate ETH’s status as a mainstream asset.
While Gambardello remains cautious about exaggerated price targets — such as Ethereum “teleporting” to $12,000 — he does see the $10,000-$12,000 range as feasible for this cycle if momentum builds. ETF approval could serve as the spark for this breakout, potentially igniting a broader altcoin surge.
Cardano Tests Key Levels Amid Market Momentum
Meanwhile, Cardano (ADA) is showing strength of its own. The asset is currently testing multi-year resistance and holding firm at the 200-week moving average — a historically significant support level. If ADA breaks above this range, it could target the critical $1 mark, a psychological and technical milestone for the smart contract platform.
The Calm Before the Crypto Storm?
With Ethereum’s supply tightening, BlackRock’s ETF pressure mounting, and Cardano preparing for a potential breakout, the crypto market could be on the cusp of explosive movement. All eyes are on the SEC, institutional flows, and key technical levels as investors brace for what could be a defining summer in crypto.
