Ethereum exchange balances have turned negative for the first time, with billions worth of ETH withdrawn from exchanges as a historic supply crisis unfolds. This marks a significant shift in market dynamics and signals long-term holding intentions among investors. Key takeaways include: 1) Billions of dollars are being pulled from platforms like Coinbase and Binance, indicating a potential liquidity crunch impacting DeFi, and Layer 2 infrastructure, as users shift towards self-custody, 2) Whale activity is driving the trend, with notable figures highlighting increased institutional demand and long-term strategy, and 3) Despite recent price drops, investors are confident in Ethereum’s future. These changes suggest potential strategic accumulation by large holders amidst rising ETF demand and increasing institutional involvement.