Ethereum Supply on Exchanges Hits All-Time LowA Bullish Signal?
This milestone underscores a broader trend of dwindling exchange balances for ETH, and it may carry significant implications for market sentiment and price action.
The chart shows a steep and consistent decline in the ratio of ETH held on exchangesa pattern that has accelerated over the past year. Meanwhile, Bitcoin (BTC) follows a similar but more moderate trajectory, with its exchange supply now at its lowest since November 2018.
This trend is widely interpreted as bullish: fewer coins on exchanges generally means reduced selling pressure. When holders move assets off exchanges, its often a signal that they intend to hold them long-term, rather than sell or trade.
As investor confidence in Ethereums long-term prospects growsdriven by staking, Layer 2 development, and increasing institutional interestthis data could be a reflection of an evolving investment mindset.
In summary, the record-low ETH supply on exchanges suggests a tightening market and may point to an incoming supply squeeze, should demand continue to rise.
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Text source: Coindoo
