Ethereum's shrinking exchange reserves signal potential drop in selling pressure — CryptoPotato

In the first quarter of 2025, the Ethereum (ETH) cryptocurrency experienced a significant decline - its value fell by 22%. However, according to the CryptoPotato website analysts, the decrease in exchange reserves indicates a weakening of the selling pressure. In their opinion, this may signal a possible recovery of ETH. 

Experts attribute the current low performance of the cryptocurrency to continued sales, decreased activity in the network and a reduction in the number of active addresses.

In the first three months of the year, Ethereum showed negative returns: in January, the decline amounted to 1.28%, in February — 32.2%, and in March — 6.27%. In addition, daily token burns reached an all-time low. On March 23, only 50.03 ETH worth less than $100,000 were destroyed.

However, as CryptoPotato writes, new data points to a possible change in the situation. In particular, asset holders are withdrawing their tokens from exchanges, indicating an intention to hold them for the long term.

At the moment, ETH is trading above $2090, which implies a daily increase of 3.8%. As the website's analysts emphasize, the cryptocurrency's future prospects depend on key price levels and broader market trends.