Ethereum Supply On Exchanges Shrinks: Multi-Year Lows Signal Bullish Setup

Ethereum Exchange Reserves Decline

Ethereum (ETH) fell below $4,000, marking a significant market pullback.
Exchange reserves of ETH have sharply declined, especially on platforms like Binance and Coinbase Advanced.
The 50-day Simple Moving Average (SMA) netflow dropped below -40,000 ETH per day, the lowest since February 2023, indicating reduced spot market supply and potential upward price pressure.
Binance shows a trend toward heavy outflows, with the 50-day SMA at its lowest in two years.
Coinbase Advanced's 50-day SMA has reached its lowest ever, around -20,000 to -25,000 ETH, suggesting large asset transfers by institutional investors to cold wallets or non-custodial platforms.
This indicates a structural trend of ETH withdrawals from exchanges, potentially reducing immediate supply and setting up medium-term bullish conditions if demand increases.

ETH Whales Accumulating

Despite bearish momentum, ETH whales are accumulating the cryptocurrency in anticipation of a potential rally.
Approximately 400,000 ETH was recently added to accumulator addresses, reflecting a rise in these specialized wallets.
Bullish macroeconomic signals suggest a possible upcoming rally for ETH, currently trading at $3,900, down 2.8% in the last 24 hours.