🔍 ETH Analysis: The Quiet Bullish Signal in Exchange Supply
A critical on-chain metric is flashing: Ethereum's exchange supply is at its lowest level in nearly a decade. This signals a profound structural change.
Key Implications:
▪️ Reduced Liquid Supply: Fewer coins on exchanges create a thinner order book, meaning even moderate buying pressure can move the price more sharply.
▪️ Behavioral Shift: The outflow during a price pullback (not after a rally) suggests accumulation and conviction, not fear-driven trading.
▪️ Volatility Catalyst: The growing divergence between stagnant price and plunging exchange reserves is a classic setup for a major move.
What to Watch: The signal remains valid unless we see sustained large inflows back to exchanges. Currently, the setup suggests ETH's downside is becoming increasingly supply-constrained.
