Ethereum balance on the (CEX) exchange drops to the lowest level since 2016

2025-12-20 03:35:54

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The amount of Ethereum held on centralized exchanges has dropped to its lowest level since 2016, a positive structural signal often considered a “bullish” trend for the market. This decline indicates that fewer ETH are readily available for sale, thereby reducing short-term selling pressure. Instead, a significant portion of Ethereum supply is being transferred to long-term storage methods such as cold wallets, staking contracts, and decentralized finance protocols (DeFi).

Historically, sharp reductions in exchange supply often precede periods of stable or rising prices, as tightening liquidity can amplify the impact of buying demand. This trend also reflects increasing investor confidence in Ethereum’s long-term prospects, including network upgrades, institutional participation, and its expanding role within the decentralized application ecosystem.

ETH-0.55%

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