CNL sees decline in Ethereum exchange balance as sign of possible price growth

Crypto News Land (CNL) reports that Ethereum inventories on exchanges decreased from 18.01 million to 17.09 million ETH between April 8 and May 13, 2025. This reduction of nearly 1 million coins occurred amid a price increase of over 81%.

The website states that a large-scale outflow of funds from exchanges is often seen as a sign of reduced selling pressure. In such cases, tokens are usually moved to cold storage or private wallets. This indicates that investors prefer to hold their assets rather than sell them. A decrease in Ethereum exchange inventories can lead to a reduction in available supply of coins, potentially driving prices higher.

CNL emphasizes the sharp rate of decline in ETH balances on the exchange of nearly 1 million in a month was one of the largest outflows in recent months. Such large-scale withdrawals typically follow or precede long-term accumulation by institutions and experienced investors.

With Ethereum prices jumping above $2,870, a reduction in exchange supply could provide support in the event of a pullback, according to CNL analysts. Even modest buying pressure in such a situation could push prices upward.