Ethereum reserves fall to 6-year lows – What this means for ETH’s bull run

• Ethereum reserves have dropped to a six-year low, highlighting a shift towards growing buying pressure across spot exchanges. 
• Meanwhile, competition for dominance is heating up.

With most of its post-election gains eroded, Ethereum’s reserves have plunged to a multi-year low, indicating strong dip-buying interest. Amid the ongoing uncertainty, can ETH push for a major bull run?

The decline in Ethereum reserves : Is it enough?

Ethereum’s spot exchange reserves have dropped to a six-year low of 8.1 million ETH. Yet, despite the overall decline, reserves have nudged up by 0.62% in January – a subtle shift that mirrors Ethereum’s 6% dip for the month. 

Source: CryptoQuant

But this drop in reserves could signal a shift towards long-term holding, suggesting renewed buying interest and the potential for a market reversal. 

Despite this, Ethereum’s performance against Bitcoin remains weak, with the ETH/BTC pair forming lower lows.

Even when the RSI showed extreme overbought levels, the lack of capital inflow into Ethereum appeared to be a major setback for the altcoin.

Having already lost 8% of its market value this month, Ethereum’s outlook remains uncertain. And the pressure doesn’t stop there – XRP’s market cap has more than doubled in just 30 days, raising the stakes further. 

A shift toward long-term holding?

Ethereum is currently up just 28% from its election day opening price, with more than half of those gains wiped out as HODLers cashed in on their profits. 

For a new rally to take shape, Ethereum will likely need a broader market shift.

Without this, a slight pullback to $2,612 could push another 10.75 million addresses into the red, putting $19 billion worth of ETH at risk of a massive sell-off.

Source: IntoTheBlock

Read Ethereum’s [ETH] Price Prediction 2025–2026

On the flip side, Ethereum reserves dropping to a six-year low is a positive sign of long-term holding, but a major bull run isn’t guaranteed — especially after January’s underwhelming performance, despite Bitcoin gaining 9%.

What’s more concerning? Bitcoin investors are losing confidence in adding ETH to their portfolios. Meanwhile, XRP is seizing the opportunity, gaining a slight edge over Ethereum in the process.