Ethereum and Bitcoin Supply on Exchanges Hits Historic Lows as Price Action Remains Range-Bound

In a significant shift reflecting evolving market behavior, Ethereum and Bitcoin have reached new lows in the percentage of their supply held on centralized exchanges.

The percentage of Ethereum and Bitcoin held on centralized exchanges has reached a new low, indicating a significant shift in market behavior.

According to on-chain analytics platform Santiment, less than 4.9% of Ethereum’s total supply is currently held on exchanges.

This marks a record low in the 7.8 year history of the world’s second-largest cryptocurrency. Meanwhile, Bitcoin’s exchange supply has also declined to just 7.1%, its lowest since November 2018.

Over the past five years

Bitcoin supply on exchanges has dropped by 1.7 million BTC

Ethereum has seen an even steeper decline, with 15.3 million ETH moving off exchanges This trend suggests a growing preference among investors to hold their assets in private wallets, possibly reflecting long-term holding strategies (HODLing) or migration to decentralized finance (DeFi) platforms and staking mechanisms.

However, despite the bullish implications of decreasing exchange supply, Ethereum’s price action over the past two weeks has been notably erratic.

Analyst DaanCrypto highlighted on X (formerly Twitter) that ETH, like Bitcoin and the broader crypto market, remains confined to a local range.

On the 4-hour chart, Ethereum is trading within a well-defined consolidation band:

There's no strong conviction to trade aggressively until a clear breakout from this range occurs.

"It seems like price action is getting more and more chaotic. We keep bouncing between support and resistance, and it feels like we're going back and forth aimlessly. It's a bit of a mess, to be honest. But on a broader time frame, we're still in a clear uptrend. So I'm not planning to change my bullish bias just yet. But we need to see some signs of strength soon. Otherwise, I might start to get pessimistic," DaanCrypto concluded.

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