The ETH reserves on exchanges are experiencing a significant decline. According to on-chain data analysis, the ETH balance on exchanges has fallen below the 2016 level. What does this mean? Whales are quietly transferring coins to cold wallets. Over the past 30 days, 10.2% of circulating ETH has been withdrawn from exchanges, equivalent to a daily reduction of 38,000 units of sell pressure. At the same time, ETH in staking contracts has exceeded 33%, and with the recent popularity of staking ETFs, truly liquid ETH in the market has become extremely scarce.

Supply is shrinking, but demand is increasing. The world's largest asset management firm has recently officially submitted an Ethereum staking ETF, and traditional pensions and sovereign funds are starting to enter. This is not just about capital flow but also reflects institutional recognition of ETH's long-term value. Once these traditional funds enter on a large scale, the price-driving effect will be very obvious.

But it's also important to recognize the risks. When news is announced, market volatility is often high, with 5% fluctuations being common. Using high leverage can lead to liquidation with just a small fluctuation. Before a surge arrives, there is usually a shakeout to trap traders, so being well-prepared with cash for defense is much smarter than blindly leveraging. The more enthusiastic the market sentiment, the more rational position management is needed.