Ethereum CEX Reserves Hit a New Low Since 2015, Market May Face Supply Squeeze

Ethereum’s centralized exchange reserves have hit an all-time low, sparking analyst warnings of a supply squeeze, per the latest data. As of last Thursday, ETH reserves on exchanges dropped to just 8.7% of circulating supply—its lowest level since the network launched in 2015. The figure remained at 8.8% as of Sunday, staying in an extremely low range. Since July, ETH exchange balances have plummeted 43%. Concurrently, institutional and Digital Asset Treasury (DAT) holdings have seen notable growth. Research firm Milk Road noted: “ETH is quietly entering the most supply-constrained environment in its history—this is unprecedented.” By contrast, Bitcoin’s exchange reserves still sit at 14.7%. Analysts point to large amounts of ETH locked in illiquid scenarios (where quick selling isn’t possible), including: - Staking & restaking - Layer 2 activities - DAT treasuries - Mortgage loops - Long-term custody Milk Road added that a supply squeeze could push prices higher once sentiment shifts: “Sentiment can be bearish, but it can’t alter the supply structure. When sentiment misaligns with supply, prices will eventually follow supply changes.” Analyst Sykodelic also noted Ethereum’s On-Balance Volume (OBV) broke through a resistance level but was briefly rejected—indicating a classic “divergence,” which often signals hidden buying pressure and builds momentum for further upside.