In a significant shift reflecting evolving market behavior, Ethereum and Bitcoin have reached new lows in the percentage of their supply held on centralized exchanges.
According to on-chain analytics platform Santiment, Ethereum now has under 4.9% of its total supply on exchanges — a record low in its 10+ year history. Meanwhile, Bitcoin‘s exchange supply has also declined to just 7.1%, its lowest since November 2018.
Over the past five years
Bitcoin supply on exchanges has dropped by 1.7 million BTC
Ethereum has seen an even steeper decline, with 15.3 million ETH moving off exchanges
This trend suggests a growing preference among investors to hold their assets in private wallets, possibly reflecting long-term holding strategies (HODLing) or migration to decentralized finance (DeFi) platforms and staking mechanisms.
Price Action Analysis: Ethereum Stuck in a Range
Despite the bullish implications of decreasing exchange supply, Ethereum’s price action over the past two weeks has been notably erratic. Analyst DaanCrypto highlighted on Twitter that ETH, like Bitcoin and the broader crypto market, remains confined to a local range.
On the 4-hour chart, Ethereum is trading within a well-defined consolidation band:
- Local Range: ~$2,300 to ~$2,580
- High Timeframe Support: $2,100
- High Timeframe Resistance: $2,800
DaanCrypto noted that there’s no strong conviction to trade aggressively until a clear breakout from this range occurs.
Summary
While the supply dynamics suggest a long-term bullish case, short-term price movement remains range-bound and indecisive. Traders and investors will be watching closely for signs of a breakout, especially with major support and resistance levels clearly established. Whether Ethereum can capitalize on its record-low exchange supply to spark the next leg up remains to be seen.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/ethereum-and-bitcoin-supply-on-exchanges-hits-historic-lows-as-price-action-remains-range-bound/