Ethereum Lags Behind Bitcoin

The largest altcoin, Ethereum (ETH), has been struggling to catch up with Bitcoin and its market for an extended period due to ongoing declines.

Investors have expressed disappointment with ETH’s poor performance, and the supply of ETH on cryptocurrency exchanges has significantly decreased, reaching very low levels.

According to a recent assessment by cryptocurrency analysis platform Santiment, the ETH supply on exchanges is at its lowest level since November 2015.

> “Thanks to the many DeFi and staking options, Ethereum holders have reduced the available supply on exchanges to almost 8.97 million. This is the lowest level in nearly 10 years. There is 16.4% less ETH on exchanges compared to just 7 weeks ago.”

Santiment noted a rapid outflow of ETH from crypto exchanges, with balances down 16.4% since the end of January. This trend suggests that investors are moving ETH to cold storage wallets for long-term holding, potentially signaling a future increase in Ethereum’s price.

Analysts observe that a significant drop in ETH supply on exchanges is known as a supply shock, which typically indicates the potential for a price rise. However, this price increase will only happen if demand remains strong or increases to surpass the declining supply.

While the decrease in exchange supply offers hope for ETH, analyst Scott Melker, known as “The Wolf of All Streets,” emphasized that ETH is facing a critical decision point, stating, “Either Ethereum bounces from here and these levels become a generational bottom, or everything is over for ETH.”

> 👋 Thanks to the many DeFi and staking options, Ethereum’s holders have now brought the available supply on exchanges down to 8.97M, the lowest amount in nearly 10 years (November 2015). There is 16.4% less $ETH on exchanges compared to just 7 weeks ago. 😮 pic.twitter.com/r5957wPhLi
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> — Santiment (@santimentfeed) March 20, 2025

Note: This is not investment advice.