ETH Eyes $4K Retest Amid Liquidity Clusters

• ETH exchange reserves are falling rapidly.
• Reduced reserves suggest strong accumulation.
• Lower reserves mean less selling pressure ahead.

Ethereum Exchange Reserves Falling Fast

Ethereum’s exchange reserves are dropping sharply—and it’s not just a minor dip. On-chain data shows ETH reserves across major centralized exchanges are hitting their lowest levels in years. This trend indicates that more ETH is being withdrawn and moved into self-custody or DeFi protocols.

When exchange reserves fall, it often signals investor confidence. Instead of keeping their ETH ready to sell, holders are locking it away, possibly expecting higher prices in the future. This could reflect bullish sentiment building behind the scenes.

What This Means for Ethereum’s Price Action

Falling reserves can have a direct impact on supply and demand dynamics. With fewer tokens available for instant sale on exchanges, the sell pressure drops. If demand increases—or even remains stable—this tightening of supply can lead to upward price movement.

Moreover, with the rise in staking and growing interest in Ethereum’s long-term potential, many investors appear to be positioning themselves for the next big move. If a supply shock hits during a wave of renewed buying, ETH could see aggressive upward momentum.

Accumulation Phase or Major Move Incoming?

This sharp drop in ETH exchange reserves may be a sign of ongoing accumulation by long-term holders and whales. Historically, similar patterns have preceded major price rallies. While nothing is guaranteed in crypto, on-chain data like this often reveals what price charts miss.

Investors are watching closely. With ETH supply on exchanges thinning out, the stage could be set for the next leg up.

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