Ether exchange reserves plunge to 9-year low at 18.95M

Ether (CRYPTO:ETH) reserves across centralised exchanges have fallen to 18.95 million, marking their lowest level since July 2016, according to CryptoQuant data from February 18, 2025.

The scarcity of Ether on exchanges may signal an upcoming price rally driven by a “supply shock,” where strong buyer demand meets decreasing available ETH, potentially pushing prices higher.

This trend suggests investors are moving their ETH into cold storage wallets for long-term holding rather than short-term sales.

Nicolai Sondergaard, a research analyst at Nansen crypto intelligence platform, views this shift as "generally bullish."

He suggests it indicates demand outpacing supply or a natural shift toward self-custody and cold storage.

Vugar Usi Zade, chief operating officer at Bitget, stated that this behavior historically "correlated with reduced sell-side pressure and price stabilisation."

Over the past two weeks, 0.83% of Ethereum's total supply has moved off exchanges, reinforcing this trend.

Despite this bullish signal, Ether has faced resistance, moving within the $2,600 to $2,800 range.

TradingView data indicates Ether has struggled to gain momentum over the past year, falling over 3.67% on the yearly chart and declining over 19% year-to-date.

The potential introduction of staking for Ether exchange-traded funds (ETFs) may also act as a catalyst for ETH price, according to Marcin Kazmierczak, co-founder and chief operating officer at Redstone.

“The potential introduction of staking ETFs could be a game-changer, further tightening Ethereum’s liquid supply and reinforcing its value proposition as a prime investment asset," Kazmierczak stated.

A potential Ether rally above $2,800 would liquidate over $822 million worth of leveraged short liquidations across all exchanges, according to CoinGlass data.

The shifting market equilibrium, driven by institutional accumulation and reduced supply from long-term holders, points toward a positive outlook, despite recent ETF outflows.

At the time of reporting, the Ethereum (ETH) price was $2,671.69.