Ether supply on exchanges drops to multi-year lows: Here’s why it matters

Ether reserves held on exchanges fell to a new multi-year low as ETH price struggles to trade above $2,000. Will the supply crunch benefit bulls or bears?

The balance of Ether (ETH) held on exchanges has slid to a multi-year low, with more than 31 million ETH leaving centralized exchanges in February, marking the largest monthly withdrawal since November. 

While the ETH price remained near $2,000, derivatives data show a split between small buyers and larger sellers, raising the question of how the price may respond if demand becomes uniform across both retail and whale wallets. 

Crypto analyst Arab Chain said that more than 31.6 million ETH left major exchanges in February, the highest monthly outflow since November. Binance led with roughly 14.45 million ETH withdrawn, nearly half of the total. OKX followed with about 3.83 million ETH, and Kraken recorded close to 1.04 million ETH.

Read more