On-chain data shows $ETH on exchanges is still withdrawing steadily.
This usually implies 2 major meanings:
1️⃣ Investors are transferring ETH to cold wallets → reducing short-term selling intentions
2️⃣ Liquidity supply on exchanges is thinning out → easy to trigger a squeeze when money flows in
📉 When reserves decrease in the context of accumulating prices, it is often a phase of 'quietly accumulating'.
📈 If combined with catalysts (ETF flow, rate cut, narrative L2…), the breakout can be very fast due to lack of hanging supply.
However, it is important to note:
• Reserves decreasing does not mean prices will increase immediately
• If demand does not come in, prices can still move sideways
🎯 Notable observation:
– Funding rate
– Open Interest
– Large supply zone above
When supply on the market decreases while OI increases sharply → the likelihood of a squeeze will be higher than usual.
Smart money does not buy when you see good news.
They buy when supply is gradually disappearing.
Do you think $ETH is in a consolidation phase before a big wave… or just temporarily withdrawing waiting for a dump? 👀🔥
