Ethereum's central exchange reserves hit a new low since 2015, potentially signaling a supply squeeze in the market.

On December 7th, Ethereum's balance on centralized exchanges plummeted to an all-time low, prompting analysts to warn of a supply squeeze. Latest data shows that: ETH reserves on exchanges fell to just 8.7% of the circulating supply last Thursday, the lowest since the network launched in 2015. As of Sunday, it remained at only 8.8%, almost at an extremely low level. Since July, the amount of ETH on exchanges has plummeted by 43%. During the same period, institutional and digital asset vault (DAT) purchases have accelerated significantly. Research firm Milk Road noted, "ETH is quietly entering the tightest supply environment in history, something never seen before." In contrast, Bitcoin's exchange reserves still stand at 14.7%. Analysts believe that a large amount of ETH is locked in scenarios where it cannot be sold quickly, including: staking and restaking, Layer 2 activities, DAT vaults, collateralized cycles, and long-term custody. Milk Road stated that supply tightening could drive prices upward after a shift in sentiment: "Sentiment can be pessimistic, but sentiment cannot change the supply structure. When sentiment and supply are misaligned, prices will eventually follow supply changes." Analyst Sykodelic also pointed out that Ethereum's OBV (On-Balance Volume) broke through resistance, but the price was briefly rejected, a typical "divergence," which usually indicates hidden buying power, accumulating momentum for subsequent increases.