Ethereum Supply Shock Deepens: Exchange Reserves Decline 18% In 5 Months

As Ethereum’s price approaches new all-time highs, the coin’s supply shock seems to be deepening with exchange reserves declining 18% in the last five months. Ethereum Exchange Reserves Are Down 18% In The Last 5 Months As pointed out by a CryptoQuant post, ETH’s exchange reserves seem to have declined a lot in the last few months, signaling that a supply shock might be brewing in the crypto. The all exchanges reserve is an indicator that shows the total amount of Ethereum present in wallets of all exchanges. An increase in the metric’s value means investors are moving their coins to exchanges for selling purposes, thus increasing the available supply of the crypto. Such a trend could be bearish for ETH. A decrease, on the other hand, would imply that holders are taking their Ethereum off to personal wallets, either for hodling them, or for selling through OTC deals. This trend can prove to be bullish for the crypto. Related Reading | Bitcoin Attempts Fresh Increase, Why BTC Could Struggle Near $62K Now, here is a chart that highlights the trend in the value of the indicator through this year: ETH's exchange reserves seem to be on a constant decline | Source: ETHUSD on TradingVIew As the above graph shows, the indicator’s value has been showing a steady decrease since a while now. In the last five months alone, the reserve has dropped by 18%. Related Reading | TA: Ethereum Outperfor...