#ETFWatch Ethereum Market Update: Potential Supply Shock Amid Rising Futures Activity

Ethereum (ETH) is currently trading at $1,991.63, reflecting a 1.9% increase from the previous close. Today’s price action has fluctuated between $1,937.58 and $2,003.07, showing strong market participation.

One of the most significant developments is the withdrawal of 360,000 ETH from exchanges within the past 48 hours. This trend suggests increased accumulation, reducing the immediate selling pressure and potentially setting the stage for a supply squeeze. Ethereum reserves on exchanges have now reached an all-time low, which historically has been a bullish indicator, as fewer coins are available for instant liquidation.

Despite this, Fidelity’s Ethereum ETF recorded zero daily inflows, indicating that institutional demand may still be in a wait-and-see phase. However, Ethereum futures open interest has surged to record highs, signaling heightened speculative activity. This suggests traders are positioning for significant price movement, though whether the momentum is bullish or bearish remains to be seen.

Investors should keep an eye on these trends, as a combination of declining exchange reserves, growing open interest, and institutional behavior could shape Ethereum’s next major move.