The “all exchanges reserve” is an Ethereum indicator that displays the total number of coins stored in all exchange wallets.
When the value of this metric rises, it indicates that the supply of ETH on exchanges has increased. Such a pattern may indicate that the market is under selling pressure.
On the other hand, a decrease would imply that the supply of ETH is decreasing as investors withdraw their crypto from exchanges for hodling or selling through OTC transactions. This behavior may indicate that buyers are optimistic about the coin’s future.
For quite some time, Ethereum exchange reserves have been steadily declining. The market is experiencing a supply shock as a result of this. An increase in demand from big whales such as institutional and retail investors can now drive up the price.
Indeed, on-chain data suggests that institutional investors have already begun to get involved in crypto, with 400k ETH exiting the crypto exchange Coinbase a few days ago.
At the time of writing, the price of Ethereum is hovering around $4.1k, up 17% in the last seven days.