The supply of Ethereum (ETH) on exchanges has significantly decreased, reflecting a growing confidence among holders who are opting to move their tokens into long-term storage.

As of December 1, the ETH supply on exchanges fell to 12.6 million, indicating a bullish sentiment as users withdraw their tokens to hold them long-term.

Over the past month, the price of ETH has surged by 43.88%, showcasing strong market momentum.

Notably, Ethereum whales began accumulating ETH again towards the end of November, with significant activity starting on November 20.

The number of Ethereum whales increased from 5,535 on November 20 to 5,580, marking the highest level since October 13 and reflecting strong confidence among major holders.

The accumulation by these whales typically signals a bullish trend, as they tend to hold their assets long-term, which can lead to a reduced circulating supply and potentially higher prices.

Currently, ETH's exponential moving average (EMA) lines are bullish, with short-term averages positioned above long-term ones; however, a dip below the shortest EMA suggests a need for caution.

If the short-term EMA lines continue to decline, ETH could face a correction down to $3,255, representing a potential 10% pullback.

Should the uptrend resume, ETH may test resistance levels at $3,688 and $3,763, with the potential to rise towards $4,000, a level not seen since December 2021.

In contrast, between November 3 and November 18, the ETH supply on exchanges had increased from 12.2 million to 12.7 million, reflecting a bearish sentiment during that period.