8M Ethereum Out of Circulation Points to a Supply Shock
The combination of ETH deposited in the staking contract and supply burned through EIP-1559 equates to about 8 million ETH worth $28.8 billion being taken out of circulation.
The number of tokens available on trading platforms has plummeted to a three-year low of 19.45 million ETH. Meanwhile, the supply outside of these financial entities has reached a new all-time high of 98.31 million ETH. The rising number of tokens being put out of circulation combined with the supply shortage.
ETH would likely continue to trend upward towards $5,000 as long as this demand barrier holds since there are no significant supply walls ahead. The important reduction of downward pressure behind Ethereum has nearly nullified a potential pessimistic outlook.