The post Ether Exchange Balances Reach Decade Low, Signaling Potential Supply Squeeze appeared on BitcoinEthereumNews.com.

ETH exchange balances have dropped to a decade-low of 8.7%, the lowest since Ethereum’s launch in 2015, as more Ether moves into staking and custody. This decline signals a tightening supply that could lead to a potential squeeze, according to on-chain data from Glassnode. ETH balances on exchanges fell to 8.7% last week, hitting a historic low. A 43% decline since early July coincides with increased institutional accumulation. Unlike Bitcoin’s 14.7% exchange holdings, ETH is increasingly locked in non-selling mechanisms like staking and layer-2 solutions. Discover how ETH exchange balances at 8.7% could spark a supply squeeze. Explore on-chain insights and price signals for Ethereum’s future. Stay informed on crypto trends—read more now! What Are the Current ETH Exchange Balances? ETH exchange balances have reached their lowest point in a decade, standing at 8.7% as of last Thursday, the smallest share since Ethereum’s mainnet launched in mid-2015. This figure edged slightly higher to 8.8% by Sunday, per data from Glassnode, reflecting a broader trend of Ether being withdrawn from centralized platforms. Analysts point to this as a sign of reduced selling pressure, with more ETH directed toward long-term holding strategies. How Is the Decline in ETH Exchange Balances Impacting Supply? The drop in ETH exchange balances represents a 43% reduction since early July, aligning with surges in digital asset treasury purchases by institutions. Macro research outlet Milk Road describes this as Ethereum entering its “tightest supply environment ever,” a level unprecedented in the asset’s history. ETH is increasingly funneled into non-liquidating uses, including staking, restaking protocols, layer-2 network activity, collateral in decentralized finance, and secure custody solutions, which limit available supply on open markets. “Sentiment feels heavy right now, but sentiment doesn’t dictate supply,” noted Milk Road. “ETH supply is tightening in the background while the market decides its next…

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Filed under: News - @ December 7, 2025 6:22 am