Reserves of the second-largest cryptocurrency by market capitalization are decreasing on spot exchanges. This may be a precursor to a future price increase, according to CryptoQuant expert known as CryptoMe.
Is ETH About to Boom? Reserves Are Dropping! So What’s the Missing Piece?
“During all this time, the price will swing. If price falls below the accumulating whales’ realized price (3rd image), it will be a buy/accumulate opportunity.” – By @cryptometugce pic.twitter.com/dnqQ0GEQyr
— CryptoQuant.com (@cryptoquant_com) September 29, 2025
The primary reason for the outflow is new purchases. Investors are buying Ethereum and immediately transferring the coins to personal wallets for non-custodial storage or staking. Such behavior indicates confidence in the asset and long-term expectations.
Meanwhile, the coin’s price remains stable. Purchases are offset by sales, so the outflow of coins from exchanges has not yet affected the quotes.
The analyst noted a pattern: in previous periods, reserve reductions often preceded market growth. The reduction in reserves decreases the supply of coins for sale and creates conditions for a subsequent rally.
What is missing for this to begin is a key element—demand. CryptoMe emphasized that this is not a “supply shock” in the classical financial sense, but merely a reduction in liquidity on trading platforms.
The expert maintained a long-term bullish forecast for Ethereum. Conditions for growth include the absence of a recession and the continuation of the Federal Reserve’s monetary easing.
The analyst also pointed to the metric of the “realized price of accumulating whales.” A drop in quotes below this level is seen as a buying opportunity.
A sharp decline in open interest in Ethereum has eased selling pressure and helped stabilize the cryptocurrency’s rate around $4000.
At the time of writing, the asset is trading at $4128.
Earlier, analysts at QCP Capital warned of the risk of Ethereum’s rate dropping to $3300.