Ethereum CEX Reserves Hit a New Low Since 2015, Market Enters State of "Extreme Scarcity"
BlockBeats News, December 7th: Ethereum's balance on centralized exchanges has reached a historic low, triggering analysts' warning of a Supply Squeeze. The latest data shows:
ETH reserves on exchanges fell to only 8.7% of circulation last Thursday, the lowest since the network's launch in 2015. As of Sunday, it remained at only 8.8%, nearly staying in an extremely low range. Since July, the ETH balance on exchanges has plummeted by 43%. Meanwhile, institutional and Digital Asset Treasury (DAT) holdings have significantly accelerated.
Research firm Milk Road pointed out: "ETH is quietly entering the most scarce supply environment in history, which is unprecedented." In contrast, Bitcoin's exchange reserve still stands at 14.7%. Analysts believe that a large amount of ETH is locked in scenarios where quick selling is not possible, including:
Staking & Restaking
Layer 2 activities
DAT Treasury
Collateral cycling
Long-term custody
Milk Road stated that the supply squeeze could drive price growth post-sentiment shift: "Sentiment can be pessimistic, but sentiment cannot change the supply structure. When sentiment is misaligned with supply, the price will eventually follow the supply change." Analyst Sykodelic also pointed out that Ethereum's OBV (On-Balance Volume) broke through resistance but was briefly rejected by the price, indicating a typical "divergence," usually signaling hidden buying pressure building momentum for an upcoming uptrend.
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