Ethereum’s Scarcity Index Hit an All-Time High in April: Price Is Now Testing What That Means

Key takeaways:

• ETH scarcity index hit all-time high of 2.47 on Binance in April.
• Index retreated but remains above 1.
• ETH price recovered from $2,260 low to $2,410 on April 22.
• Large volume spike confirmed demand on the recovery candle.
• RSI at 69.42 – just crossed below signal line at 70.23 at resistance.
• Resistance level: $2,420 on 1H chart.
• Index above 1 historically associated with price support, not weakness.

The Binance ETH scarcity index measures the relationship between available ETH supply on the exchange and demand for it. When the index is above zero, demand is outpacing available supply. When it goes negative, supply is exceeding demand. In April, it reached 2.47, a reading never recorded in the seven years of data visible on the chart, going back to 2019.

That record did not come at a price high. It came while Ethereum