Ethereum’s price action is one of the most disappointing features of 2025. “Altcoins’ King” recently fell below $2,000 for the first time in over a year. However, the latest on-chain data shows that the fate of the second largest cryptocurrency could be about to change.
Here’s why ETH prices can rebound from their current lows
In a recent post about the X platform, popular YouTuber Crypto Rover revealed that a significant amount of Ethereum has flown out of cryptocurrency exchanges in the past few weeks. This on-chain observation is based on a change in the “Ethereum Exchange Reserve” metric, which tracks the total amount of ETH tokens for all centralized exchanges.
The increased value of Exchange Reserve Metric suggests that investors are moving assets to wallets belonging to these centralized platforms. This is usually considered a bear signal for an asset. Sales are one of the main reasons investors send coins to centralized exchanges.
On the other hand, a decrease in metric values means that more assets are flowing out of central exchange. This trend could indicate new purchases from investors or new benefits on long term holdings. This could be bullish for asset prices.
Interestingly, another chain development shows that Ethereum whales have been loading their bags in the past few days. Data from Santiment shows that whales carrying 1,000,000 tokens have purchased over 120,000 ETK tokens in the past 72 hours.
Source: @rovercrc on XAs shown in the encryption chart above, the Ethereum Exchange Reserve has fallen into a new low for ETKEN, with 18.3 million people. This is a positive indication of Ethereum prices, as increased allocations to independent wallets indicate increased confidence in the long-term potential of the asset.
Crypto Rover noted that if Ethereum in the central exchange continues to be reserved, Altcoin could experience a “supply shock,” or a more appropriate supply crunch. In the context, a supply crunch refers to a decrease in the amount of assets available for purchase, leading to a price jump.
Ultimately, a decrease in Ethereum supply in centralized exchanges could serve as a key catalyst for ETH price recovery.
Ethereum prices are at a glance
At the time of this writing, Ethereum priced around $1,990, reflecting a 0.6% increase over the past 24 hours.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
ISTOCK featured images, TradingView chart
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