Ethereum (ETH) Exchange Reserves Drops to 2018 Levels -Is This a Price Rally Signal?

 Ethereum Price Insights:

• Ethereum price reclaimed $2,000 on Monday, November 20, as the crypto market made a strong start to the week. 
• Investors have shifted 152,583 ETH into long-term storage since Blackrock’s official Spot ETF Filing on November 15. 
• Since the filing, the Coinbase Premium Index has trended in Positive values for 5 consecutive days, signaling strong buying momentum among US-based corporate entities.

Ethereum price broke $2,000 on Monday, November 20, after consolidating at the $1,950 area over the weekend. On-chain analysis uncovers how US-based corporate investors have reacted to Blackrock’s recent ETH filing. 

Ethereum Exchange Reserves Dropped to a 5-year Low 

Ethereum price reclaimed $2,000 on Monday. On-chain data shows corporate investors have entered a race to accumulate ETH following Blackrock’s Spot ETH filing. 

Ethereum price has moved sideways over the past week. But a closer look at recent on-chain data trends show that ETH investors have started making strategic bullish moves in the aftermath of Blackrock Spot ETH ETF filing. 

CryptoQuant’s Exchange Reserves charts shows that investors started shifting ETH coins into long-term storage shortly after Blackrock filed for Spot ETH ETF on November 15. 

The 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.