[Ethereum CEX Reserves Hit Lowest Levels Since 2015, Market May Face Supply Squeeze] BlockBeats News, December 7: Ethereum balances on centralized exchanges have dropped to historic lows, prompting analysts to warn of a potential supply squeeze. The latest data shows: Last Thursday, ETH reserves on exchanges fell to just 8.7% of circulating supply, marking the lowest level since the network launched in 2015. As of Sunday, reserves remained at only 8.8%, staying within an extremely low range. Since July, the amount of ETH on exchanges has plummeted by 43%. During the same period, institutional holdings and digital asset treasury (DAT) accumulation have significantly accelerated. Research firm Milk Road noted: "ETH is quietly entering the tightest supply environment in its history, something we've never seen before." In comparison, Bitcoin's exchange reserves still stand at 14.7%. Analysts believe that a large amount of ETH is locked in scenarios where it cannot be quickly sold, including: - Staking & Restaking - Layer 2 activities - DAT treasuries - Collateral cycles - Long-term custody Milk Road stated that supply constraints could drive prices upward once sentiment shifts: "Sentiment can be pessimistic, but sentiment cannot change the supply structure. When sentiment and supply are misaligned, prices will ultimately follow supply changes." Analyst Sykodelic further pointed out that Ethereum's OBV (On-Balance Volume) indicator has broken through resistance, but the price faced a brief rejection. This is a typical "divergence," which often signals hidden buying pressure and builds momentum for subsequent price increases.