Exchange Reserves Plummet: Ethereum Primed to Replicate 2020 Rally Patterns

Exchange balances are bleeding out at an alarming rate—and history might be repeating itself.

The Great Drain

Ethereum reserves across major trading platforms have entered freefall, mirroring the exact same patterns that preceded the 2020 bull run. When supply disappears from exchanges, it typically means one thing: long-term holders are battening down the hatches.

Technical Déjà Vu

The current chart formations show uncanny similarities to the setup that launched ETH's last major breakout. Reduced selling pressure combined with accumulation phases often create the perfect storm for parabolic moves.

Market Mechanics at Play

Fewer coins available for trading means even moderate buying pressure can trigger significant price appreciation. It's basic supply-demand economics—though in crypto, basic sometimes means violently unpredictable.

Just like traditional finance, except the numbers actually matter here and the suits can't manipulate the supply. Maybe that's why Wall Street still doesn't get it.