Ever wondered why Ethereum’s price often feels "tight" lately? On-chain data reveals that Ethereum's exchange supply has just hit its lowest level since 2016.

When ETH leaves exchanges, it’s usually heading into cold storage or being locked in staking contracts and DeFi protocols. This "Supply Shock" mechanism means there is less ETH available to buy on the open market. If demand spikes even slightly, the lack of immediate liquidity can lead to much sharper upward price movements compared to when exchanges are flush with tokens.

Lesson: The "Exchange Reserve" metric is one of the most powerful indicators of long-term sentiment. A shrinking exchange supply is a silent bullish signal because it reduces the "sell-side" pressure, making the asset more sensitive to new buying volume.

Is self-custody the best way to HODL, or do you prefer the ease of an exchange? 👇

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