Ethereum exchange reserves have dropped to levels last seen in 2015, with just 4.9% of the total supply held on trading platforms. This significant decrease signals a potential shift towards long-term holding as investors take control of their ETH holdings through self-custody and reduces immediate sell pressure. Experts highlight this move as potentially bullish for the asset’s price trajectory, while cautioning that similar price surges seen with Bitcoin could occur due to increased demand when the supply tightens further. This decline in exchange reserves follows substantial withdrawals totaling around 1 million ETH within the past month, as reported by crypto analyst Ali Martinez. The shift towards self-custody signifies a growing desire for long-term security and stability amidst volatile market conditions.