ETH on Exchanges Is PlummetingEthereum’s Exchange Supply Ratio has continued its sharp decline and is now sitting near multi-year lows, according to CryptoQuant data.
What the Chart Shows:
> The blue line (Exchange Supply Ratio) has been trending lower for months and is currently around 0.127.
> This means a shrinking percentage of total ETH supply is held on centralized exchanges.
> Price (white line) has been consolidating near the $1,800 area while the supply available for immediate trading keeps tightening.
Why It Matters:
Lower exchange balances reduce the amount of ETH that can be sold quickly on the open market. When combined with ongoing staking and self-custody trends, this creates the conditions for a potential supply squeeze if demand picks up.
The trend has been consistent through both price strength and weakness, pointing to structural accumulation rather than short-term trading flows.
This can’t keep going lower forever without eventually testing the market’s ability to absorb any new buying pressure.
ETH Exchange Supply Ratio Near Multi-Year Lows — Supply Squeeze Building
What the Chart Shows:
> The blue line (Exchange Supply Ratio) has been trending lower for months and is currently around 0.127.
> This means a shrinking percentage of total ETH supply is held on centralized exchanges.
> Price (white line) has been consolidating near the $1,800 area while the supply available for immediate trading keeps tightening.
Why It Matters:
Lower exchange balances reduce the amount of ETH that can be sold quickly on the open market. When combined with ongoing staking and self-custody trends, this creates the conditions for a potential supply squeeze if demand picks up.
The trend has been consistent through both price strength and weakness, pointing to structural accumulation rather than short-term trading flows.
This can’t keep going lower forever without eventually testing the market’s ability to absorb any new buying pressure.
ETH Exchange Supply Ratio Near Multi-Year Lows — Supply Squeeze Building