Ethereum Exchange Reserves Drop To 9-Year Low As Zcash Leads Market Recovery

The crypto market is recovering after a steep correction over the last few weeks, but Ethereum could be looking at a bigger pump incoming. The amount of ETH tokens on centralized exchanges has dropped to its lowest point in nine years, amidst the growing institutional accumulation.

With the drop in the Ethereum exchange reserve, analysts are predicting a new all-time high soon. Meanwhile, Zcash (ZEC) is leading the current market recovery, with gains of 39% over the last seven days. With a major break above $60, how high could the ZEC price go in this market recovery? 

Exchange Reserves Plunge: Will Ethereum Pump?

Exchange balances of Ethereum (ETH) held on all centralized exchanges have been declining since mid-2020. In the last two years alone, the available supply of Ethereum on exchanges has dropped by around 50%. 

As a result of this massive exodus of ETH tokens, the total exchange supply of Ethereum has dropped to its lowest point since 2016. According to data from Glassnode, the exchange balance has dropped to 14.8 million ETH.

CryptoQuant has also reported a similar trend, with the Ethereum exchange supply ratio at 0.14, which is its lowest level since July 2016. A CryptoQuant analyst has also explained that the Ethereum price could “go boom,” because previous drops in exchange supply led to massive price increases.

Currently, Ethereum has just recovered above the $4,100 support after dropping as low as $3,850 over the weekend. Ted Pillows has explained that for the Ethereum uptrend to continue, it must first recover above the $4,250 resistance.

The analyst explains that if the Ethereum price fails to recover this zone, it could drop towards the $3,600-$3,800 support level. However, Pillows is hyper bullish about Ethereum, forecasting that the correction could end in a few weeks and lead to a rally to $10,000.

Zcash Leads Market Recovery With 39% Pump: How High Can It Go?

Amidst growing support for privacy coins, including from Mert, the CEO of Helius, the price of Zcash (ZEC) has been one of the leading names in the crypto market recovery. CoinGlass data also shows a significant increase in Open Interest for Zcash.

According to data from Tradingview, the price of Zcash has pumped by more than 16% in the last 24 hours and is up by 39% on the 7D price chart. As a result of the price pump, the price of Zcash has surged above $67.5 for the first time since December 2024.

Zcash surpassed its 78.6 percent Fibonacci retracement at 61.01, indicating that it could rise even more. The Relative Strength Index (RSI) is at the overbought region of 72, whereas Moving Average Convergence Divergence (MACD) shows that the trend is positive.

Grayscale has also been reportedly buying ZEC, adding to the momentum behind Zcash. With this confluence of bullish signals, the analyst, Erick Crypto, has forecasted that since $ZEC just broke the $56.3 resistance, it could target as high as $80 in the coming days.

In Summary

Ethereum and Zcash both have solid bases on which to experience major rallies. The decline in exchange supply indicates investors are betting that the Ethereum price will keep on rising. Meanwhile, ZEC has experienced a significant technical breakout, which could push its price to a new multi-year high.