Ethereum Supply Squeeze Signals Market Shift

  • ETH outflows surpass exchange accumulation for the first time.
  • Exchange Flux Balance turns negative, signaling a supply squeeze.
  • Institutional demand drives potential market growth.

Ethereum Faces Historic Supply Squeeze

The cryptocurrency market is buzzing with excitement as Ethereum (ETH) experiences a groundbreaking supply squeeze, a phenomenon detailed in a recent analysis by Alphractal. For the first time in its history, the amount of ETH leaving exchanges has surpassed their ability to accumulate reserves, as evidenced by the Exchange Flux Balance turning negative. This shift, highlighted by a steep decline in exchange reserves over recent months, suggests a massive outflow of billions of dollars’ worth of ETH. The data, spanning from 2017 to 2025, shows a clear trend: high Exchange Flux Balance values indicated exchange accumulation, while the current low values signal a supply crunch driven by institutional and public demand.

Billions in ETH Withdrawn From Exchanges

This supply squeeze is further underscored by Ethereum’s Netflow metrics, both in ETH and USD, which reveal a consistent withdrawal trend. The cumulative effect has created a historic setup, potentially heating up the market as market makers show unprecedented interest. With

ETH prices recently recorded at $4,127.95 USD (as per CoinMarketCap), the reduced circulating supply could pave the way for significant price stability or even a bullish surge. Whales and institutional players are likely hoarding ETH, a move that aligns with the growing trend of staking, which locks up nearly 30% of the total supply.

A Pivotal Moment for Ethereum’s Future

This development marks a pivotal moment for Ethereum, reinforcing its position as a leading cryptocurrency. As exchanges struggle to maintain reserves, the tightened liquidity could reshape investor sentiment, setting the stage for a transformative phase in the digital asset landscape. For enthusiasts and investors, this supply squeeze is a signal to watch closely, as it may herald a new era of growth and stability for ETH.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.

Hot this week

From Bitcoin to Ethereum: Market Rotation Accelerates Ahead of Potential New ETH All-Time High

Ethereum’s rally above $4,500 and a falling BTC-to-ETH ratio confirm growing dominance, signaling Altseason’s arrival and a new crypto market cycle.

Ethereum Breaks $4,500 Resistance, Altseason Looms as Macro Liquidity Returns

Ethereum breaks $4,500, mirroring the Russell 2000’s breakout as risk-on sentiment rises, fueling expectations for a new Altseason and market expansion.

ETH Supply at Record Lows – Is a Major Rally Next?

Ethereum is flashing one of its most reliable historical...

Cardano Breaks Resistance at $0.87, $1 Rally Expected Soon

Cardano ($ADA) surges to $0.87 as Bitcoin breaks ATH,...

Solana Price Could Dip to $210 Before Breaking Its ATH Record

Solana ($SOL) could revisit $210 before aiming for a...

Topics

From Bitcoin to Ethereum: Market Rotation Accelerates Ahead of Potential New ETH All-Time High

Ethereum’s rally above $4,500 and a falling BTC-to-ETH ratio confirm growing dominance, signaling Altseason’s arrival and a new crypto market cycle.

Ethereum Breaks $4,500 Resistance, Altseason Looms as Macro Liquidity Returns

Ethereum breaks $4,500, mirroring the Russell 2000’s breakout as risk-on sentiment rises, fueling expectations for a new Altseason and market expansion.

ETH Supply at Record Lows – Is a Major Rally Next?

Ethereum is flashing one of its most reliable historical...

Cardano Breaks Resistance at $0.87, $1 Rally Expected Soon

Cardano ($ADA) surges to $0.87 as Bitcoin breaks ATH,...

Solana Price Could Dip to $210 Before Breaking Its ATH Record

Solana ($SOL) could revisit $210 before aiming for a...

Bitcoin Breaks Free: From Four-Month Consolidation to a Renewed Bullish Surge

Bitcoin breaks above $123K after months of consolidation, signaling bullish momentum toward $130K as technical strength and scarcity fuel confidence.

Ethereum Double Breakout Signals Major Rally

Ethereum breaks a 7-year ADX trendline, signaling a major...
spot_img

Related Articles

Popular Categories

spot_imgspot_img