Ethereum exchange reserves have dropped to a near decade low, potentially triggering a supply crunch.
Ethereum Reserves Plunge to 9-Year Low
According to CryptoRank and Santiment, the amount of ETH held on exchanges has plunged to 8.97 million, the lowest since November 2015. CryptoQuant data confirms this downtrend, suggesting ETH is being moved to self-custody wallets, potentially reducing sell pressure.
Whales Load Up as Price Dips
Ethereum dropped below $2000 for the first time in over a year. CoinMarketCap data shows a more than 51% drop from its December peak of $4100. Despite this, whale activity has surged, with wallets holding 1,000,000 to 10,000,000 ETH buying over 120,000 ETH in the past 72 hours.
Critical Recovery Zone for Ethereum
Analysts remain cautious, pointing out the need for ETH to reclaim the $2,200 level to confirm a breakout. Rekt Capital notes that stable recovery above this level is necessary for further price growth.
Despite macroeconomic pressures, Ethereum continues to see exchange reserves decline, which could lead to a price rebound if key resistance levels are reclaimed.
