Ethereum Reserves on Exchanges Drop to 9-Year Low, Signaling Potential Market Bottom
The amount of Ethereum held on centralized exchanges has nearly reached a nine-year low, fueling investor optimism about a potential market bottom that could pave the way for a recovery toward the psychological $3,000 level.
On February 18, Ethereum reserves across all exchanges dropped to 18.95 million ETH—the lowest level since July 2016, when the cryptocurrency was trading around $14. This decline suggests that investors are moving their holdings to private wallets for long-term storage, a sign that often precedes price increases.
This phenomenon, known as a “supply shock,” occurs when growing demand meets a dwindling available supply, often triggering a price rally. With fewer ETH tokens available for trading, bullish momentum may be building, potentially setting the stage for Ethereum’s next upward move.