Ethereum exchange reserves have fallen to their lowest point in three years, dropping nearly 11 million ETH since the start of 2023. This decline coincides with a surge in withdrawals and significant liquidations across major platforms. Data suggests that over 500,000 ETH, valued at $2.1 billion, left exchanges last week alone, indicating growing preference for self-custody wallets and staking contracts. Ethereum’s price has also experienced volatility, with exchanges reporting a total of $45.4 million in liquidations over the past 24 hours, with shorts exceeding longs. Analysts attribute this trend to increased adoption by corporate entities and spot ETFs, which continue to absorb supply while keeping coins out of circulation.