ETH Hits Lowest Supply Level Since 2015: Will the Price "Explode"?

Data from #Santiment shows that there are only 8.97 million ETH on exchanges, the lowest level since 2015. This is usually a bullish signal, as declining supply can cause a supply shock, helping ETH prices surge if demand is strong enough.

Why is ETH Still Decreasing Despite Low Supply?

Although the theory of "decreasing supply, increasing price" is often correct, $ETH has dropped by 47% from a peak of $4,105 to around $1,990. The main reasons are:

Development of Layer-2: Scaling solutions like #ARBİTRUM , Base are attracting users, causing Ethereum's revenue and TVL to decline.

Lack of price increase momentum: The inflow of funds into ETH is not large enough to create a strong upward momentum, especially without approval from spot Ethereum ETFs.

Conditions for ETH to Surge

Experts state that the reduction of ETH supply on exchanges is a positive signal, but not enough to stimulate price increases. For ETH to really break out, additional momentum from large capital inflows is needed, such as:

✅ Capital flow from Ethereum ETFs (if approved by the SEC).

✅ Recovery of Ethereum's TVL as Layer-2 and dApps continue to develop.

✅ Large investors (whales) accumulating ETH in large quantities.

Conclusion

The fact that ETH's supply has hit a record low is a good sign, but it is just one part of the bigger picture. Without new capital inflows or strong price increase momentum, ETH may continue to trade sideways or face pressure from competing ecosystems such as Layer-2.