The amount of Ethereum (ETH) $2,011 held in central cryptocurrency exchanges has dipped below 9 million for the first time since November 2015, currently standing at 8.97 million ETH. This significant decline indicates that investors are withdrawing their assets from exchanges, opting for alternative storage methods. The reduction in liquidity is viewed as a potential signal that could directly impact the cryptocurrency market.
ETH Supply on Central Exchanges Declines
According to on-chain analysis platforms, reserves of ETH on central exchanges have reached their lowest point in nine years. The current level of 8.97 million ETH has not been seen since November 2015. This development is believed to potentially alter the supply dynamics within the cryptocurrency market.
It has been observed that investors are moving their ETH from central exchanges to personal wallets or hardware wallets. Such preferences may decrease liquidity in the market, affecting trading volumes. The reduction in circulating ETH could lead to shifts in supply-demand balance, with experts suggesting that such declines may trigger upward price movements.
Similar Trend Noted in BTC Reserves
A similar trend occurred with Bitcoin (BTC) $87,176 in January 2025, when the amount held on central exchanges fell to a seven-year low. Shortly thereafter, BTC prices began to rise. This parallel has sparked expectations that ETH may experience a similar scenario.
According to an analysis by CryptoRank, investors moving their ETH to cold storage significantly reduces liquidity. This situation leads to a decrease in the amount of ETH available for trading on exchanges. Reducing assets on exchanges could play a crucial role in future price movements.
Market observers note that declines in reserves on central exchanges are generally interpreted as a precursor to price increases. In scenarios where demand remains stable or increases, reducing supply could result in rising prices. The drop in liquidity, alongside a scarcity of ETH, heightens expectations for potential price increases.