Ethereum (ETH) Exchange Reserves | Source: CryptoQuantThe chart below shows the Ethereum coins deposited across crypto exchanges stood at 14.5 million as on November 15. But investors have since moved 152,583 ETH off exchanges, bringing the total market supply to a 5-year low of 14.3 million.
Exchange Reserves is an on-chain metric that tracks the total supply of a cryptocurrency deposited in exchange-hosted wallets and trading platforms. Typically, a decrease in exchange supply infers a drop in the number of coins readily available to be traded on exchanges and trading platforms. With Ethereum price currently hovering around $2,0000, the 152,583 ETH removed from exchanges are worth approximately $305 million.
Specifically, July 2018, was the last time ETH market supply was this low. Crypto whales and sophisticated high-networth investors are known to opt for cold storage. If the Blackrock ETF filing attracts more whales to buy ETH, the exchange supply will likely drop even further.
Notably, ETH price had also dropped to 2018 lows when it skyrocketed to an all-time high of $4,891 back in 2021.
Hence, the rapid decline in Ethereum market supply could put upward pressure on ETH price toward the $4,000 market if the Spot ETF applications are approved by the SEC.