The largest altcoin Ethereum (ETH) has been struggling to keep up with Bitcoin and the market for a long time while battling the get dumped.
The supply of ETH, which has left its investors at a loss due to weak performance, has dropped to very low levels on cryptocurrency exchanges.
The crypto analysis platform Santiment stated in its latest assessment that the supply of ETH on exchanges has fallen to its lowest level since November 2015.
“Thanks to many DeFi and staking options, Ethereum holders have reduced the current supply on exchanges to nearly 8.97 million. This is the lowest level in about 10 years, (November 2015). There is 16.4% less ETH on exchanges compared to just 7 weeks ago.”
Santiment stated that ETH has rapidly exited from cryptocurrency exchanges and that exchange balances are down by 16.4% since the end of January.
This situation is seen as a signal that investors are moving their ETH to cold storage wallets for long-term holding and that the price of Ethereum will increase in the future.
At this point, analysts indicate that the significant drop in ETH supply on exchanges, commonly referred to as supply shock, signals a potential price increase. However, the price increase will only occur if demand remains strong or increases to outpace the declining supply.
The decline in the exchange supply gives investors hope for ETH, while analyst Scott Melker, known as “The Wolf of All Streets”, stated that ETH is at a critical crossroads, saying, “Either Ethereum bounces back from here and these levels become a generational bottom, or everything is over for ETH.”
👋 Thanks to the many DeFi and staking options, Ethereum’s holders have now brought the available supply on exchanges down to 8.97M, the lowest amount in nearly 10 years (November, 2015). There is 16.4% less $ETH on exchanges compared to just 7 weeks ago. 😮 pic.twitter.com/r5957wPhLi
— Santiment (@santimentfeed) March 20, 2025
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