Ethereum Faces Supply Crunch with Exchange Holdings at 9-Year Low

Ethereum (ETH) supply on centralized cryptocurrency exchanges is at an all-time low levels. According to Glassnode data, the volume of Ethereum on exchanges dipped by 8.8%, the lowest they have dropped since 2015.

This refers to the amount of Ethereum stored by holders on exchanges as they look to trade in the crypto market. This quantity has been on a steady decline since July 2025. The crash to the current level has sparked concerns about supply squeeze.

Market Conditions Point Toward Emerging Ethereum Supply Squeeze

Generally, when the volume of an asset on centralized exchanges drops, it suggests that holders are unwilling to sell. They are HODLing to the asset likely with the anticipation of a possible price surge in the market.

According to the macro investment research feed, Milk Road, Ethereum holders are moving their assets into other areas. These include staking, restaking, collateral loops, as well as long-term custody. For instance, BitMine, founded by Tom Lee recently accumulated $150 million worth of Ethereum to increase its portfolio.

The development suggests that a supply squeeze might hit the Ethereum market with possible positive impact on price. Milk Road maintained that Ethereum was slipping into one of the tightest supply environments that has not been witnessed before.

Ethereum Price Outlook 

Ethereum, just like other crypto assets, has been experiencing price fluctuations. Its price has swung between a low of $3,026.47 and an intraday peak of $3,067.66 in the last 24 hours. As of this writing, Ethereum is changing hands at $3,048.81, which represents a 0.53% increase within the period.

The coin’s trading volume remains on a huge decline by 54.94% at $10.06 billion. This might explain the stagnant price despite the supply level that has dropped to exchanges.

However, if the low supply to centralized exchanges lingers, this scarcity could trigger price uptick for Ethereum. The $3,000 support level also needs to hold in order for ETH to retest higher prices.

Network Upgrades Strengthen Ethereum’s Long-Term Bullish Case

Meanwhile, the recent Fusaka upgrade which requires Layer-2 solutions like Arbitrum and Base to pay fees in Ethereum could support its bullish moves. Notably, this has increased ETH burn rate and reduced selling pressure on the coin.

The upgrade is also expected to make the Ethereum network faster and stronger as it processes more data. Ultimately, it will help the network scale.