Recent data reveals that Ethereum’s exchange supply is at record lows, suggesting an imbalance between supply and demand. This phenomenon, historically linked to significant price increases, has spurred speculation about a potential breakout in the market. Analysts attribute this downward trend to long-term holders and institutions accumulating ETH while keeping it off exchanges. This pattern resembles a bathtub draining – a stable surface but with ongoing outflow beneath the surface. Once selling dries up, even minor demand shifts could trigger rapid price increases. Ethereum has historically exhibited similar behavior in cycles of previous years. For instance, during 2020-2021 and 2022-2023, similar supply drains preceded explosive rallies, pushing ETH’s prices higher.