The quantity of Ethereum (ETH) held in centralized exchange reserves has plummeted to 8.97 million tokens, the lowest level since November 2015. This phenomenon could reduce the available supply on the market and trigger a price increase, following a trend already observed with Bitcoin (BTC).
Summary
The decline of Ethereum reserves on exchanges: Is ETH preparing for a new price rally?
According to the data from CryptoRank and Santiment, the amount of Ethereum held on centralized exchanges has reached a historic low of over nine years. Currently, only 8.97 million ETH are available on these platforms, marking a significant reduction compared to previous levels.
This decline reflects the growing trend of investors to transfer their cryptocurrency reserves into private wallets or cold storage, thus reducing the liquidity available for immediate trading. This phenomenon could have effects on the cryptocurrency market, influencing the availability of ETH and potentially increasing its price.
Same Bitcoin precedent: optimistic signal for Ethereum (ETH)?
A similar phenomenon occurred with Bitcoin in January 2025, when the reserves held on exchanges reached the lowest level in the last seven years. After reaching the low of 90,000 BTC on January 13, the price increased rapidly, surpassing 109,000 dollars in the following days.
This trend suggests that a reduction in ETH reserves could have similar effects, generating greater upward pressure on the price. The lower availability of coins on exchanges can indeed reduce the possibility of sudden sales, increasing the value of the asset over time.
Why are investors withdrawing ETH from exchanges?
The exodus of Ether from exchanges could be attributed to several factors:
- Greater security: many investors prefer to hold their cryptocurrencies in private wallets to reduce the risk of hacker attacks or losses due to technical issues of the exchanges.
- Growth prospects: with the reduction of supply on exchanges, some traders might expect a price increase, preferring to keep assets in cold storage in anticipation of future revaluations.
- Long term and staking: the Ethereum model based on staking through Proof of Stake (PoS) encourages many ETH holders to transfer their tokens to dedicated platforms to earn rewards instead of leaving them inactive on exchanges.
What to expect now?
If the trend continues, Ethereum (ETH) could experience greater bull pressure, just as it happened for Bitcoin at the beginning of 2025. The lower availability on exchanges can lead to an increase in demand and, consequently, to a potential price increase in the medium to long term.
However, it is important to consider that various factors could influence the market, including regulatory trends, macroeconomic conditions, and the movements of large investors. For this reason, analysts will continue to monitor the situation to assess the possible evolutions of the price of Ethereum in the coming months.
In summary, the decline in ETH reserves on exchanges highlights a significant change in investor strategies, with possible repercussions on the cryptocurrency market.