Ether Withdrawn from Exchanges as Spot ETF Approval Sparks Supply Squeeze

• Over $3 billion worth of Ether removed from exchanges post approval of Ether ETFs.
• 797,000 Ether withdrawn from exchanges between May 23 and June 2.
• Lower exchange reserves indicate potential upcoming supply squeeze.
• Percentage of circulating Ether on exchanges at lowest level in years (10.6%).
• Ether ETFs expected to launch by late June, potentially driving price to new ATH.
• Ether currently trading at $3,781, down 0.82% in 24 hours and 23% from ATH.

Summary :
Since the approval of spot Ether exchange-traded funds (ETFs) in the United States on May 23, over $3 billion worth of Ether has been withdrawn from centralized crypto exchanges. This indicates a potential upcoming supply squeeze. The amount of Ether on exchanges has decreased by approximately 797,000, equivalent to $3.02 billion, between May 23 and June 2. Lower exchange reserves suggest that fewer coins are available for sale as investors move their coins to self-custody for purposes other than immediate selling. Data from Glassnode shows that the percentage of circulating Ether supply held on exchanges is at its lowest level in years, standing at just 10.6%. Analysts believe that the launch of Ether ETFs could lead to increased demand pressure and potentially push Ether to break its all-time high. Unlike Bitcoin, Ether may benefit even more from demand pressures as it does not face the same level of "structural sell pressure." However, there are concerns that Grayscale's Ethereum Trust (ETHE) could influence Ether's price action, similar to what happened with Grayscale Bitcoin Trust (GBTC). Currently, Ether is trading at $3,781, down 0.82% in the past 24 hours and around 23% from its all-time high.

Sources :

- CoinTelegraph