Ethereum Exchange Supply Hits 2016 Lows Amid Institutional Accumulation

CryptoQuant's latest report reveals a significant decrease in Ethereum's exchange supply, reaching levels not seen since 2016. This shift is linked to increased institutional accumulation and suggests a bullish price outlook.

Key Points:

The Ethereum exchange supply ratio has dropped to approximately 0.137, among the lowest readings since 2016.
This metric indicates a reduced fraction of ETH available for liquidation on exchanges, affecting market liquidity.
A continued outflow of ETH from exchanges to external wallets suggests long-term holding preference over short-term trading.
The shrinking exchange supply could lead to price increases due to basic supply-and-demand dynamics.
Historical trends show similar declines in exchange supply during reaccumulation or stable price movements after volatility.

Ethereum on Binance:

ETH balances on Binance have steadily declined, with the Exchange Supply Ratio at 0.0325.
This reflects broader market sentiment, as traders hold ETH off exchanges amid market uncertainty.
The decreasing supply and ETH's price stability suggest lower selling pressure and a potential phase of liquidity absorption.

Ethereum