Ethereum Exchange Reserves Plummet to Multi-Year Low Amid ETF Surge
Ethereum has been struggling to break above $2,500, but there's an interesting trend developing beneath the surface. Exchange reserves have dropped to a multi-year low of around 14.88 million ETH.
This decline in exchange supply is due in part to staking, which has absorbed a large share of circulating supply, with about 35.9% of ETH now reportedly staked. Additionally, U.S. Ethereum ETFs have seen significant inflows, with $216.4 million pouring in on September 11 alone.
The combination of declining exchange reserves and renewed ETF buying creates an unusual price-prediction setup for Ethereum. Instead of focusing solely on whether ETH can break resistance, investors are now wondering if the progressively less available supply could amplify demand when it comes.