The amount of Ethereum held on central exchanges has dipped to levels not seen since November 2015, raising discussions about potential market impacts.
ETH Supply Decline on Exchanges
According to blockchain analysis platforms, ETH reserves on central exchanges have reached a nine-year low at 8.97 million. Investors are moving ETH to personal or hardware wallets, which may reduce market liquidity and affect trading volumes.
Bitcoin Reserves Parallel
A similar trend was seen with Bitcoin (BTC) in January 2025, when reserves on exchanges reached a seven-year low, after which BTC prices began to rise. This sparks expectations for a similar ETH scenario. CryptoRank analysis highlights that moving ETH to cold storage significantly reduces liquidity.
Impact of Reduced Liquidity
Declines in exchange reserves are often seen as precursors to price increases. When demand remains stable or increases, reduced supply can lead to price hikes, and the scarcity of ETH on exchanges raises expectations for future price rises.
The reduction of Ethereum reserves on central exchanges could have a significant market impact, especially considering the historical effects seen with Bitcoin.
