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Ethereum's Supply Squeeze: Is a Price Surge on the Horizon?

Through March 24, 2025, the volume of Ether (ETH) on central exchanges has fallen to a nine-year low of 8.97 million tokens, a 16.4% drop in seven weeks [no citation]. This movement indicates investors are moving funds to cold storage or off-exchange wallets, marking a long-term holding strategy and not a short-term selling strategy, thus possibly lowering market liquidity [no citation].

This is echoed in a similar pattern witnessed with Bitcoin in January 2025, where lower exchange reserves led to a price spike, prompting analysts to propose that Ethereum might witness a similar fate if the trend continues [no citation].

The exodus of ETH from exchanges is seen as a bullish indicator, reflecting increasing investor confidence, with big investors actively buying ETH [no citation]. Even though Ethereum's price has been around $2,000, the reduced supply is seen in a positive light, perhaps laying the groundwork for a "supply shock" that would cause prices to rise

 

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