(Bloomberg) -- The price of Ethereum briefly rose above $2,100 on Wednesday, April 2, as a historic volume of ETH was moved off centralized exchanges, signaling a potential supply squeeze.
"The outflow of Ethereum from exchanges is a strong bullish signal," said a senior analyst at CryptoQuant, a leading on-chain analytics firm. "It suggests that investors are moving their assets into cold storage, likely with the intention of holding for the longer term."
Data from CryptoQuant shows that exchange reserves of Ethereum have fallen to their lowest level since 2018. This large-scale exodus from exchanges reduces the readily available supply for selling, which could lead to a "supply shock" if demand for ETH remains strong or increases. The last time such a significant outflow was observed, it was followed by a multi-month bull run for the second-largest cryptocurrency by market capitalization.
A sustained reduction in exchange supply, coupled with increasing demand from institutional and retail investors, could create significant upward price pressure for Ethereum in the coming weeks. The next key resistance level to watch is $2,500, a level not seen since the last market cycle peak.
The trend of accumulating Ethereum in non-exchange wallets has been growing throughout 2026. This behavior is often interpreted as a sign of conviction from holders who are not easily swayed by short-term market fluctuations. The move to self-custody also reflects a growing awareness of the risks associated with keeping large amounts of cryptocurrency on exchanges, following several high-profile security breaches in recent years.
While the immediate price action saw a slight correction below the $2,100 mark, the underlying on-chain metrics point towards a potentially sustained upward trajectory. The market will be closely watching to see if the exchange outflow trend continues and if demand is sufficient to absorb the reduced sell-side pressure.
This article is for informational purposes only and does not constitute investment advice.
