ETH Exchange Reserves at 9-Year Low on Institutional Demand
On-chain data shows ETH exchange reserves have fallen to 14.8 million ETH, the lowest since July 2016. Over the past two years, Ethereum exchange reserves have declined nearly 50%, including a 20% drop since mid-July. Institutional investors—including digital asset treasury firms—and U.S. spot Ether ETFs drove net outflows to decade highs, moving 5.26 million ETH into corporate treasuries and 6.75 million ETH into ETFs. Large withdrawals into cold storage, staking, and DeFi reduce immediate sell pressure. Despite an 11% pullback to below $4,100 last week, shrinking ETH exchange liquidity and strong institutional flows may support longer-term price strength. Traders should monitor Ethereum exchange reserves and institutional demand for bullish signals.
Bullish
The sharp decline in ETH exchange reserves signals reduced immediate supply on centralized exchanges, lowering sell pressure and bolstering price stability. Institutional demand from treasury firms and spot ETFs has driven net outflows to decade highs, demonstrating confidence in ETH’s long-term value. While short-term volatility led to an 11% price pullback, the ongoing shift of ETH into cold storage, staking, and DeFi indicates sustained accumulation. Traders are likely to interpret dwindling exchange liquidity and robust institutional flows as bullish for Ethereum.