Ethereum Exchange Balances Hit All-Time Low: Sign of Supply Squeeze?

Story

Ethereum balances on centralized exchanges have reached a historic low of just 14.5 million ETH. This decline is part of a longer-term trend that began in July 2025, suggesting that investors are increasingly moving their ETH into self-custody or staking. Millions of ETH are already locked in staking contracts, further reducing the immediately available circulating supply. For you as an investor, this is a significant signal: lower availability of ETH on exchanges means less selling pressure. Should spot demand for Ethereum pick up again, this supply squeeze could lead to a strong price increase. Market data confirms this bullish trend: Ethereum has risen by +0.93% in the last 24 hours and even recorded a +10.38% gain over seven days. The positive funding rates of +0.0037% indicate that long positions in the derivatives market are paying short positions, reflecting the bullish sentiment in perpetual markets. High staking participation further underscores the community's long-term holding intentions and strengthens the argument for a potential supply squeeze that could support Ethereum's price in the future.