TechFlow news, September 6 — According to Glassnode data, Ethereum (ETH) exchange reserves have dropped to their lowest level since 2016. Throughout this year, ETH exchange balances have steadily declined, falling from 14 million at the beginning of the year to approximately 11.7 million by early August. This trend aligns with fluctuations in ETH's price. In March, ETH prices approached $4,000 but experienced a significant drop in late July.
Despite price volatility, the ongoing withdrawal of ETH from exchanges reflects growing market appetite for long-term holding. The sustained outflow of ETH from exchanges may stem from several factors: rising demand for staking, increased DeFi activity, and users' growing preference for self-custody solutions.
