Ethereum Supply Hits 17-Month Low, Signals Upturn

Ethereum’s (ETH) exchange reserves have fallen to the lowest level since May 2024, according to Binance data. Experts indicate a shift among investors, moving away from short-term trading towards longer-term holdings.

Ethereum reserves on Binance peaked in June before sharply declining in November, reaching the lowest point seen in 17 months. This suggests investors are withdrawing assets from exchanges and transferring them to cold wallets, often interpreted as a positive (bullish) signal, indicating reduced selling pressure.

The price of Ethereum reached a range of $4,500–$5,000 in August and September, but is currently trading around $3,500. The decline in price coinciding with the decrease in supply points to a possible scenario where investors, after realizing profits, are reinvesting for the long term.

If the decline in ETH supply on Binance continues, the amount of liquidity available for sales may decrease. This could stabilize the price in the short term and potentially set the stage for a new uptrend in the medium term. A period of sideways trading is also possible if demand remains weak or network activity slows.

Overall, the Ethereum market is currently undergoing a transition. The increased tendency among investors to accumulate assets may pave the way for a new bullish cycle.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.