Centralized exchanges see lowest Ethereum holdings in years

In the wake of the approval of spot Ethereum exchange-traded funds (ETFs) in the United States on May 23, a significant shift in Ethereum holdings has occurred.

According to data from CryptoQuant, centralized crypto exchanges (CEXes) have seen a withdrawal of approximately 797,000 ETH, equivalent to $3.02 billion, between May 23 and June 2. This substantial decrease in exchange reserves suggests that investors are moving their Ethereum into self-custody, reducing the immediate supply available for sale.

Glassnode data, shared by BTC-ECHO analyst Leon Waidmann, reveals that the percentage of circulating Ethereum supply held on exchanges has reached its lowest level in years, currently standing at just 10.6%. This reduction in available supply on exchanges could potentially contribute to increased demand pressure on Ethereum.