I recently analyzed a set of data and found something interesting—mainstream trading platforms' Ethereum supply has actually returned to the levels seen in 2016. This isn't just simple fluctuation; it's important to note that ten years ago, the entire crypto market was still in its exploratory phase. Now, Ethereum has firmly established itself as the second-largest crypto asset, yet its supply has moved back to levels from a decade ago. The underlying information behind this warrants serious consideration.

In recent months, there's been a clear trend—Ethereum continuously flows out of trading platforms, primarily in a "one-way flow" with almost no signs of re-entry. Some might think this is just ordinary transfers, but that's not the case. The coins on these platforms are mainly held by retail investors, used as "liquid chips" for short-term trading. The persistent departure of coins indicates that these chips are shifting from the "short-term trading pool" to long-term holders' accounts.

I have compiled fund flow data from the past six months. This outflow is definitely not a scattered behavior by retail investors; it exhibits characteristics of "large amounts, continuous, and regular." What does this imply? Major players are taking action. These institutions or large holders operate very differently from retail investors—they don't chase highs or sell on dips. Instead, they are accumulating Ethereum on a large scale, essentially positioning themselves in advance for subsequent value releases.

From a market perspective, what happens when the tradable supply of a core asset becomes tight? The price acts like a compressed spring—once the potential energy is released, a strong rebound occurs. The amount of Ethereum available for trading is decreasing, while holding costs are rising. This is a very strong signal for short-term traders—should they continue to accumulate or start to sell? Historically, such tight supply conditions often indicate an important turning point in the price.