The amount of $ETH held on centralized exchanges has reached its lowest point since July 2016, according to data from Glassnode.
As of Thursday, only 14.85% of all $ETH was held in wallets owned by centralized exchanges. This decline is attributed to the growing popularity of staking, which locks up available $ETH, making it unavailable for trading.
In comparison, during the bull market of 2021, the exchange balance of ETH was around 25-26%. Low exchange balances are typically considered a bullish sign as it means the supply of $ETH available for purchase is limited. This scarcity puts upward pressure on prices.