Ethereum Supply Tightens: Exchanges Turn Negative

Ethereum (ETH) exchange balances have fallen to levels last seen in 2016-2017, indicating a structural shift away from centralized holding. This decline is driven by increased staking, Layer-2 (L2) migration, and self-custody practices. Consequently, ETH withdrawals have been consistently negative since late August, suggesting coins are moving to more permanent off-exchange storage locations. Ethereum’s price currently shows signs of consolidation within a narrowing range before possible breakout towards the $4,500 area. A sustained close above that level would signal further upward momentum.