Deep Chao TechFlow news, on September 6, according to Glassnode data, Ethereum (ETH) exchange reserves have dropped to the lowest level since 2016. Since the beginning of this year, the balance of ETH exchanges has continued to decline, gradually reducing from 14 million at the beginning of the year to about 11.7 million in early August. This trend coincides with ETH price fluctuations. In March, ETH price was close to $4,000, but experienced a significant drop in late July.
Despite price fluctuations, investors continue to transfer ETH out of exchanges, reflecting the market's increased willingness to hold for the long term. The continued outflow of ETH from exchanges may be due to multiple factors: rising staking demand, increased DeFi activity, and users' preference for self-custody solutions.
