Data from CryptoQuant shows that approximately 797,000 Ether, valued at $3.02 billion, was removed from exchanges between May 23 and June 2.
This reduction in exchange reserves suggests fewer coins are available for sale as investors move their assets to self-custody for purposes other than immediate selling.
Leon Waidmann, an analyst at BTC-ECHO, highlighted that Glassnode data reveals the percentage of Ether held on exchanges has dropped to its lowest level in years, now at just 10.6% of the circulating supply.
Bloomberg ETF analyst Eric Balchunas recently suggested that Ether ETFs have a “legit possibility” of launching by late June.
Some analysts predict that the introduction of spot Ether ETFs could drive Ether to surpass its November 2021 all-time high of $4,870 due to increased demand, mirroring the effect seen with Bitcoin after the launch of spot Bitcoin ETFs in January.
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Michael Nadeau, a DeFi report crypto analyst, noted on May 28 that Ether might benefit more from demand pressures than Bitcoin because it lacks the same “structural sell pressure.”
Unlike Bitcoin miners, who must sell BTC to cover mining costs, Ethereum validators do not face similar operational expenses.
However, there are concerns about the potential impact of Grayscale’s Ethereum Trust (ETHE), which manages $11 billion in funds.
If it mirrors the Grayscale Bitcoin Trust (GBTC), which experienced $6.5 billion in outflows in the first month post-approval, it could significantly influence Ether’s price action.
Currently, Ether is trading at $3,781, marking a 0.82%
decrease over the past 24 hours and is down around 23% from its all-time high, according to CoinMarketCap.
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