Ether Exchange Reserves Plunge to Near 9-Year Low, Sparking Price Rally Hopes

Ether (ETH) reserves on centralized exchanges have plummeted to levels not seen in almost nine years, fueling optimism among investors for a potential market bottom and a subsequent price recovery towards the $3,000 mark. This decrease in available ETH may trigger a "supply shock," where high buyer demand meets dwindling supply, potentially driving up the price. While Ether has struggled over the past year, falling 3.67%, the movement of ETH off exchanges into cold storage wallets for long-term holding is considered a bullish signal. A rally above $2,800 could liquidate over $822 million in leveraged short positions. The possible introduction of staking for Ether ETFs could further tighten the liquid supply and boost its value.