Ethereum Exchange Reserve Hits New All-Time Low — Bullish For ETH Price?

Ethereum’s price action has been one of the most disappointing features of 2025. The “king of altcoins” recently slipped below $2,000 for the first time in over a year. However, the latest on-chain data shows that the fortunes of the second-largest cryptocurrency might be about to change.

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Here’s Why ETH Price Could Rebound From Current Lows

In a recent post on the X platform, popular YouTuber Crypto Rover revealed that significant amounts of Ethereum have been flowing out of cryptocurrency exchanges in the past few weeks. This on-chain observation is based on changes in the “Ethereum Exchange Reserve” metric, which tracks the total amount of ETH tokens on all centralized exchanges.

An increase in the value of the Exchange Reserve metric suggests that investors are moving their assets to wallets affiliated with these centralized platforms. This is usually considered a bearish signal for the asset, as selling is one of the main reasons investors send their coins to centralized exchanges.

On the other hand, when the metric’s value declines, it implies that more assets are flowing out of the centralized exchanges. This trend could signal fresh buying from investors or renewed interest in long-term holdings, which could be bullish for the asset price.

Interestingly, a separate on-chain revelation shows that Ethereum whales have been loading their bags in the past few days. Data from Santiment shows that whales holding between 1,000,000 and 10,000,000 tokens have purchased over 120,000 ETH tokens in the last 72 hours.

Source: @rovercrc on X

As shown in the CryptoQuant chart above, the Ethereum Exchange Reserve has fallen to a new all-time low of 18.3 million ETH tokens. This is a positive sign for the Ethereum price, as increased allocation to self-custodial wallets signals an elevated confidence in the asset’s long-term potential. 

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Crypto Rover noted that if the Ethereum reserves on centralized exchanges continue to dwindle, the altcoin could experience a “supply shock” — or more fittingly a supply crunch. For context, a supply crunch refers to a decline in the amount of an asset available for purchase, leading to a jump in prices.

Ultimately, this fall in Ethereum supply on centralized exchanges could act as a significant catalyst for ETH’s price recovery.

Ethereum Price At A Glance

As of this writing, the price of Ethereum stands at around $1,990, reflecting a 0.6% increase in the past 24 hours.

The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView

Featured image from iStock, chart from TradingView

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