Ethereum Reserves Drop to 18.39M ETH on Self-Custody Trend
Ethereum exchange reserves have declined to 18.39 million ETH as of August 17, 2025, marking a new low. Data from CryptoQuant shows substantial outflows from centralized platforms, as investors shift assets off exchanges into self-custody solutions. The decline in exchange reserves signals reduced market liquidity, increasing the risk of price volatility and placing upward pressure on ETH prices. Institutional investors are leading withdrawals, reflecting growing confidence in decentralized storage methods. Traders should closely monitor exchange reserves, liquidity metrics, and on-chain flows. Continued outflows may signal bullish momentum for Ethereum in both the short and long term.
Bullish
A sustained drop in Ethereum exchange reserves historically correlates with reduced sell-side liquidity and upward price movements. Major withdrawals, particularly by institutions, reflect confidence in self-custody and intensify scarcity on exchanges, driving short-term spikes and supporting long-term bullish momentum. Similar patterns in Bitcoin’s reserve declines have preceded rally phases, suggesting that continued ETH outflows could trigger a comparable price surge.