The supply of Ethereum on trading platforms has fallen to its lowest level since 2016.
This means that the amount of Ethereum available for immediate sale is much lower than it has been for nearly a decade.
Traders are withdrawing Ethereum from trading platforms, which reduces short-term selling pressure, preferring to hold it instead of selling for a quick profit.
When liquid supply contracts in this way, the market becomes highly sensitive. Even low demand can cause sharp volatility.
ETH
3,026.77
+1.62%