Ethereum’s price motion has been some of the disappointing features of 2025. The “king of altcoins” recently slipped below $2,000 for the primary time in over a yr. Nevertheless, the newest on-chain data shows that the fortunes of the second-largest cryptocurrency is perhaps about to vary.
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 previously few weeks. This on-chain remark relies on changes within the “Ethereum Exchange Reserve” metric, which tracks the entire amount of ETH tokens on all centralized exchanges.
A rise in the worth of the Exchange Reserve metric suggests that investors are moving their assets to wallets affiliated with these centralized platforms. This will likely be considered a bearish signal for the asset, as selling is considered one of the primary reasons investors send their coins to centralized exchanges.
Alternatively, 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 may very well be bullish for the asset price.
Interestingly, a separate on-chain revelation shows that Ethereum whales have been loading their bags previously 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 within the last 72 hours.
Source: @rovercrc on X
As shown within the CryptoQuant chart above, the Ethereum Exchange Reserve has fallen to a recent all-time low of 18.3 million ETH tokens. It is a positive sign for the Ethereum price, as increased allocation to self-custodial wallets signals an elevated confidence within the asset’s long-term potential.
Crypto Rover noted that if the Ethereum reserves on centralized exchanges proceed 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 quantity of an asset available for purchase, resulting in a jump in prices.
Ultimately, this fall in Ethereum supply on centralized exchanges could act as a major catalyst for ETH’s price recovery.
Ethereum Price At A Glance
As of this writing, the value of Ethereum stands at around $1,990, reflecting a 0.6% increase previously 24 hours.
The worth of ETH on the each day timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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