As of March 24, data from CryptoRank and Santiment revealed a significant turn of events in the Ethereum (ETH) market.
The centralized exchanges (CEX) of the Ethereum network hold the smallest amount of Ethereum in nearly nine years, with 8.97 million ETH remaining on the platforms. This sharp decline indicates a serious shift in Ethereum’s market dynamics, where the number of tokens available for immediate sale or trading on those same platforms is at an all-time low, not seen since November 2015.
Ethereum Supply on CEX Hits 9-Year Low – Only 8.97M ETH Left
As of March 24, data from CryptoRank and Santiment shows that Ethereum holdings on centralized exchanges (CEX) have dropped to their lowest level since November 2015, now standing at just 8.97 million ETH.
🔹 Reduced… pic.twitter.com/TmU3A8UyX6
— Followin (@followin_io) March 24, 2025
The reduction in the supply of Ethereum on exchanges has sent a ripple of questions among observers about what it might mean for the market. It could be a sign of something more dire in the short term—reduced liquidity, for instance. Or it could be something much nicer: a precursor to a big jump in Ethereum’s price since there’s now less of the stuff on hand for traders to do whatever it is with Ethereum that they do. But sometimes it’s just nice to know in what direction the wind is blowing. So let’s take a look at this etherwind. One Ethereum observer—Evangelos Kandias—has suggested on Twitter that the current situation is hexing traders.
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Reduced Liquidity May Lead to Price Movements
Ethereum’s drop in supply directly impacts centralized exchanges. The liquidity available on those exchanges has decreased significantly. There are now only 8.97 million ETH left on exchanges to trade. And that could create a situation where Ethereum’s price becomes far more reactive to changes in demand.
A primary driver of this shift is that a good number of Ethereum holders are opting to transfer their assets from exchanges into cold wallets for what seems to be long-term storage. When these investors undertake this action, they are in effect taking ETH out of circulation and not making it available on exchanges. This strike appears to be a bullish one for Ethereum because it suggests the investors are in a less-sell, more-hold mode, with action that seems to imply confidence in Ethereum’s future.
Additionally, a decrease in supply on exchanges usually causes an increase in demand, which in turn makes prices go up. In the case of Bitcoin, we saw its supply on exchanges drop earlier this year, followed by an intense spike in its price. Right now, Ethereum is very similar to Bitcoin in that its current supply on exchanges has dropped significantly.
Ethereum Spot ETFs Experience Outflows
Even with the nice signs pertaining to the diminished offering of Ethereum on exchanges, not all goings-on in the Ethereum marketplace are encouraging these days. From March 17 to March 21, Ethereum spot exchange-traded funds (ETFs) took a net outflow of $103 million for the week. The most sizable exit was from BlackRock’s Ethereum ETF (ETHA), which saw a net outflow of $74 million. This could be taken as a somewhat bearish sign, suggesting that institutional investors might be easing back on Ethereum.
From March 17 to March 21, Ethereum spot ETFs saw a total net outflow of $103 million for the week. The largest outflow came from BlackRock’s Ethereum ETF (ETHA), which recorded a net outflow of $74 million.
In contrast, Bitcoin spot ETFs recorded a total weekly net inflow of…— Wu Blockchain (@WuBlockchain) March 24, 2025
The notable part about the outflows from Ethereum ETFs is they represent a change in investor sentiment. Spot ETFs are products that institutional investors often use to gain exposure to an asset without having to directly purchase or manage it. The outflows suggest that some large investors are currently less confident than they were a month ago in Ethereum’s short-term prospects. That said, these flows are only a snapshot in time and can quickly change based on broader market conditions and investor sentiment.
A Look Back: Bitcoin’s Similar Price Surge
Grasping the possible fallout from Ethereum’s scant exchange supply requires us to consider a closely related event with Bitcoin that took place in January. On the heels of several price drops in late 2022, Bitcoin’s supply on centralized exchanges plummeted. Investors, it seemed, were taking their funds and moving them to the safety of cold storage. The only problem? With so few Bitcoin available to trade, the actual price of Bitcoin began to rise too.
Even though Bitcoin and Ethereum are separate assets with their own market dynamics, we must not overlook the parallels between the two. If demand for Ethereum remains robust while its supply continues to dwindle, the cryptocurrency may be set for a price moonshot. This hinges, of course, on whether the reduced supply in the exchanges translates into an increase in buying pressure—something that seems less and less likely with each passing day.
Conclusion: Reduced Exchange Supply Signals Potential for Price Growth
A recent development for the cryptocurrency known as Ethereum is its stark drop in supply on centralized exchanges. There currently exists only 8.97 million ETH on such platforms, the lowest figure recorded in nearly nine years. This dearth seems to signal a move by not just retail, but also institutional investors, to cold wallets (hence the term “decreasing liquidity”) and is probably a bullish omen. After all, a cryptocurrency is less likely to be traded when there is almost none to be had. All of this is apparently part of a trend, with holders increasingly demonstrating faith in what seems to be Ethereum’s long-term viability.
Despite a drop in exchange supply, Ethereum spot ETFs have seen notable outflows. This could suggest a potential short-term pullback from some of the institutions that had been investing in Ethereum via this vehicle. It might modestly affect the price if these trends continue.
In the end, it is the interplay of supply and demand that will determine the direction of travel for Ethereum’s price. A situation has emerged that is similar to what happened with Bitcoin in January: the supply of Ethereum available on exchanges has fallen, and if demand picks up, the price could appreciate. Of course, this is a big “if,” one that many are watching closely as the weeks unfold. Even if it does play out, seeing Ethereum hit new highs could be a possibility.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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