Could Ethereum’s Shrinking Exchange Supply Trigger a Major Rally?
The post Could Ethereum’s Shrinking Exchange Supply Trigger a Major Rally? appeared on BitcoinEthereumNews.com.
TLDR: ETH exchange balances fall to 2015 lows, creating a thinner supply pool that could amplify future demand shifts. Staking, L2 growth, and custody trends continue pulling ETH off exchanges, reducing immediate selling pressure. Institutional interest from major firms adds momentum as Ethereum’s circulating supply becomes increasingly restricted. Tom Lee signals ETH’s undervaluation near $3K, suggesting a supply-driven setup could support strong upside moves. Ethereum’s exchange supply has fallen to levels last seen nearly a decade ago, creating a new market structure defined by reduced liquidity and slower sell-side activity. This shift continues as large volumes of ETH migrate into staking, layer-2 systems, and long-term storage. Market participants are watching the trend closely as the available trading float narrows while price hovers in the $3,000 zone. This environment has raised questions about how the market may react if demand increases while circulating supply remains compressed. The tightening supply backdrop has already become one of the most discussed developments surrounding Ethereum in recent weeks. Exchange Balances Reach Historic Lows Ethereum exchange supply recently dropped to 8.7%, according to data from glassnode. The post noted that balances have fallen 43% since July, marking the lowest figure since 2015. This shift reflects a steady movement of ETH into staking contracts and ecosystem functions that encourage longer holding periods. $ETH SUPPLY ON EXCHANGE BALANCES HIT 2015 LOWS Ethereum exchange balances have dropped to their lowest level since 2015:↓ 43% since JulyOnly 8.7% of ETH remains on exchanges With more ETH locked in staking, layer-2s, DATs, and long-term custody, supply is tightening. A… pic.twitter.com/1XS1pHC8KZ — CryptosRus (@CryptosR_Us) December 7, 2025 The data shows that Ethereum is being pulled away from traditional trading venues and placed in environments where selling becomes less immediate. As more tokens become locked within staking and layer-2 activity, fewer units remain…
Filed under: News - @ December 7, 2025 1:26 pm