Will declining exchange reserves reinforce Ethereu

Will declining exchange reserves reinforce Ethereum’s supply crunch?

Exchange reserves have declined by 3.21% in the last 24 hours, totaling $58.63 billion, at press time. This drop reflects increasing on-chain withdrawals, often interpreted as a shift to self-custody.

 As coins move away from centralized exchanges, the available supply for trading diminishes. This tightening dynamic may create upward pressure if demand remains constant or increases. 

Therefore, lower reserves align with the broader narrative of long-term holding behavior and reduced immediate sell pressure.

This development supports Ethereum’s recent climb, especially when considered alongside ETF inflows and whale activity.