Ethereum

Flow

Bitcoin

MN Coin

<ul>
 <li style="font-weight: 400;">ETH’s supply has dropped to its lowest level since the merge.</li>
 <li style="font-weight: 400;">A key indicator has shown the re-emergence of the bears in the ETH spot market.</li>
</ul>
<a href="https://ambcrypto.com/search/ethereum" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Ethereum’s [ETH]</a> supply has fallen to its lowest since the blockchain transitioned from the proof-of-work consensus mechanism (PoW) to a proof-of-stake (PoS) network in an event popularly referred to as “The Merge.”
Although the week has witnessed an elevated cost of sending and receiving ETH, the network has also burned a significant amount of the cryptocurrency, leading to a shrinking overall supply.
According to data from <a href="https://ultrasound.money/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">Ultrasound.money</a>, 31,829.06 ETH worth around $71.58 million have been burned in the last week. Within the same period, newly issued coins totaled 16,535 ETH.
AMBCrypto found that since the merge, 320,870.92 ETH worth $721.68 million at the coin’s current price has been removed from circulation. At press time, the leading altcoin’s supply was 120.2 million ETH.
<div id="attachment_359039" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Screenshot-2023-12-16-at-06.35.55.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-359039" decoding="async" class="wp-image-359039 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Screenshot-2023-12-16-at-06.35.55.png" alt="" width="1142" height="724" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Screenshot-2023-12-16-at-06.35.55.png 1142w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Screenshot-2023-12-16-at-06.35.55-300x190.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Screenshot-2023-12-16-at-06.35.55-1024x649.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Screenshot-2023-12-16-at-06.35.55-768x487.png 768w" sizes="(max-width: 1142px) 100vw, 1142px"></a>
 Source: Ultrasound.money
</div>
<h4>Profit-takers control the market</h4>
At press time, the network’s native coin traded at $2,249. Sharing a statistically significant correlation with <a href="https://ambcrypto.com/search/btc" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Bitcoin [BTC]</a>, whose value has fallen by 5% in the last week, ETH’s value has dipped by 6% within that period.&nbsp;
As profit-taking activity intensifies, there has been a steady decline in ETH accumulation. An on-chain assessment of the coin’s network activity on a seven-day simple moving average revealed a drop in demand for the altcoin.
Data from <a href="https://app.santiment.net/charts/oDQ16PAV__sCl" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">Santiment</a> showed that in the last week, the daily count of active addresses involved in ETH transactions has decreased by 2%.&nbsp;
<div id="attachment_359041" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Ethereum-ETH-06.37.25-16-Dec-2023.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-359041" decoding="async" class="wp-image-359041 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Ethereum-ETH-06.37.25-16-Dec-2023.png" alt="" width="2560" height="867" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Ethereum-ETH-06.37.25-16-Dec-2023.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Ethereum-ETH-06.37.25-16-Dec-2023-300x102.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Ethereum-ETH-06.37.25-16-Dec-2023-1024x347.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Ethereum-ETH-06.37.25-16-Dec-2023-768x260.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Ethereum-ETH-06.37.25-16-Dec-2023-1536x520.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Ethereum-ETH-06.37.25-16-Dec-2023-2048x693.png 2048w" sizes="(max-width: 2560px) 100vw, 2560px"></a>
 Source: Santiment
</div>
The decline in ETH’s network activity coincides with the re-emergence of the bears, as readings from the coin’s Moving Average Convergence/Divergence indicator (MACD) showed.&nbsp;
On 12th December, the MACD line crossed below the trend line. This movement signaled the weakening of the coin’s upward momentum, which ushered in the bears.&nbsp;
Since then, ETH’s Relative Strength Index (RSI) and Money Flow Index (MFI) have trended downwards, suggesting that coin distribution has exceeded accumulation.
<div id="attachment_359043" style="width: 100%" class="wp-caption alignnone"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/ETHUSD_2023-12-16_06-36-39.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-359043" decoding="async" class="size-full wp-image-359043" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/ETHUSD_2023-12-16_06-36-39.png" alt="" width="2368" height="1302" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/ETHUSD_2023-12-16_06-36-39.png 2368w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/ETHUSD_2023-12-16_06-36-39-300x165.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/ETHUSD_2023-12-16_06-36-39-1024x563.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/ETHUSD_2023-12-16_06-36-39-768x422.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/ETHUSD_2023-12-16_06-36-39-1536x845.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/ETHUSD_2023-12-16_06-36-39-2048x1126.png 2048w" sizes="(max-width: 2368px) 100vw, 2368px"></a>
 Source: ETH/USD on TradingView
</div>
Read&nbsp;<a href="https://ambcrypto.com/predictions/ethereum-price-prediction" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">ETH’s Price Prediction</a>&nbsp;2023-24
Moreso, amid the decline in demand for the alt, there has been an increase in its supply on exchanges in the past few days. According to data from <a href="https://cryptoquant.com/asset/eth/chart/exchange-flows/exchange-reserve?exchange=all_exchange&amp;window=DAY&amp;sma=7&amp;ema=0&amp;priceScale=log&amp;metricScale=linear&amp;chartStyle=line" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">CryptoQuant</a>, ETH’s exchange reserve has seen a 0.35% uptick in the last week.
This confirmed the trend of ETH holders sending their coins to exchange for onward sales to take a profit. As of this writing, ETH’s exchange reserve was 14.27 million ETH.

Are Ethereum bears emerging from the shadows?

AMBCrypto

Other articles published on Dec 16, 2023

BAND: Know How this Oracle Platform is Facilitating Blockchain Communication

BRC-20 Tokens: A Week of Remarkable Gains

Arbitrum suffers partial outage amid transaction traffic surge

Bitcoin Price Has Hit New all-Time Highs In Six Countries

5 must-have altcoins for New Year: the ultimate 2024 portfolio

Significant Movement in Chainlink: Implications for LINK Price

Join our free newsletter for daily crypto updates!