🚨$ETH Supply Crisis Incoming? Nearly 1 Million ETH Withdrawn from Exchanges in Just One Month

According to the latest Glassnode data, nearly 1 million ETH—worth around $2.5 billion—has been withdrawn from centralized exchanges over the past 30 days. This marks one of the most aggressive accumulation trends for Ethereum since the 2021 bull run and signals a potential supply squeeze forming.

Historically, large-scale withdrawals from exchanges are seen as bullish. When investors move assets off platforms into cold wallets or DeFi protocols, it suggests long-term holding intentions and reduced selling pressure. Less ETH on exchanges means lower liquidity for sell orders, setting the stage for upward price movement if demand remains strong.

This behavior aligns with key market developments. Ethereum’s growing role in real-world asset tokenization and institutional DeFi is driving demand from long-term investors who prefer self-custody. Also, Layer 2 scaling solutions and high-yield staking options are incentivizing users to deploy ETH in DeFi rather than leave it idle on exchanges.

With rising macroeconomic uncertainty and fiat debasement concerns, more investors treat Ethereum as a hedge against financial instability. Combined with upcoming Ethereum Improvement Proposals (EIPs) reducing ETH issuance and increasing burn rates, this trend could further tighten supply in the coming months.

Glassnode’s chart clearly shows a divergence between exchange balances and ETH price action, with prices starting to climb as liquidity dries up. If this continues, the market may be nearing a classic supply shock—historically a precursor to major bull runs.

Will Ethereum’s shrinking exchange reserves trigger the next explosive price movement? Or is the market still waiting for a stronger catalyst?#AMAGE