Ethereum Plummets 35% despite Hype: Supply Concerns Fuel Market Downturn

Ethereum experienced a dramatic 35% drop in value despite positive sentiment surrounding Eric Trump’s tweet about the cryptocurrency. This price crash occurred amid broader market declines and signals potential supply constraints impacting Ethereum’s future price trends. Crypto exchange reserves are at multi-year lows, suggesting investors have been moving away from exchanges, leading to lower overall supply. Despite short-term volatility, this reduced availability of Ethereum could lead to a future surge in prices when demand outstrips the limited supply.