Ethereum’s (ETH) supply on cryptocurrency exchanges has plummeted to its lowest level since November 2015, sparking speculation about an impending price rally. According to blockchain analytics platform Santiment, the total amount of ETH held on exchanges has dropped to 8.97 million, marking a 16.4% decline since January.
👋 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
This sharp reduction in exchange reserves indicates that investors are moving their ETH into cold storage, a sign of growing long-term confidence in the asset. Historically, such a trend—often referred to as a “supply shock”—has preceded significant price increases, provided demand remains strong.
Could ETH Follow Bitcoin’s Footsteps?
A similar scenario played out with Bitcoin (BTC) earlier this year. On January 13, BTC reserves on exchanges fell to a nearly seven-year low of 2.35 million BTC. Just a week later, Bitcoin surged to a record-breaking $109,000 amid heightened market interest. Some analysts believe Ethereum could follow a comparable trajectory.
Crypto trader Crypto General told their 230,800 X followers that a “big supply shock” is only a matter of time. Another prominent trader, Ted, suggested that as ETH supply continues to dwindle, competition among buyers could lead to “bidding wars.” Meanwhile, trader Naber projected that Ethereum could surge to the $8,000–$10,000 range, a potential 64% gain from its all-time high of $4,878 in November 2021.
$ETH exchange reserve keep decreasing because big whales accumulating on cold wallet for cheap.
— Crypto General 🧲 (@DaCryptoGeneral) March 19, 2025
Just a question of time before the big supply shock
$6,000 loading 🧲⚡️ pic.twitter.com/ULy41ldzvd
Bearish Signals Still Linger
Despite the bullish sentiment surrounding ETH’s dwindling supply, other indicators have cast a bearish outlook. Ethereum’s performance against Bitcoin is at its lowest in five years, with analysts like Daan Crypto Trades stating that a recovery to previous highs is unlikely in the near term. Additionally, spot Ether ETFs have recorded 12 consecutive days of outflows, amounting to $370.6 million.
Currently trading at $1,971, Ethereum has lost 26% over the past month, according to CoinMarketCap. As analyst Scott Melker—known as “The Wolf of All Streets”—puts it, “Either Ethereum bounces here and this is a generational bottom, or it’s over.”
Also Read: Coinbase Leads Ethereum Staking with 3.84M ETH: Market Expansion Accelerates
With mixed signals from both bullish and bearish perspectives, the coming weeks could be crucial in determining Ethereum’s next major move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
