Ethereum’s supply on centralized exchanges is dropping rapidly, and market watchers are starting to take notice. As more $ETH is being withdrawn from trading platforms and moved into cold storage or DeFi protocols, the available supply for buyers continues to shrink.
This trend is fueling talk of a potential supply shock. When demand remains steady or increases while supply dries up, prices often rise sharply. With large investors, including whales, making multi-million dollar purchases and opening long positions, confidence in $ETH seems to be building.
On-chain data shows exchange balances at multi-year lows, suggesting that traders are not planning to sell anytime soon. Instead, Ethereum is being staked, locked in smart contracts, or simply held in private wallets.
If the trend continues, Ethereum’s price could experience significant upward pressure. The market may soon see what happens when demand meets dwindling supply.
Eyes wide open—this could get interesting.
