According to AltcoinGordon, ETH exchange reserves have dropped to their lowest level in seven years, signaling a potential supply squeeze that could drive price volatility and set the stage for a significant rally in Ethereum and related crypto assets (source: https://twitter.com/AltcoinGordon/status/1929435423756910996). For traders, this on-chain metric indicates increasing accumulation or holding behavior, reducing immediate selling pressure and suggesting heightened potential for upward price momentum. Monitoring on-chain data and exchange flows becomes crucial for short-term and swing traders seeking to capitalize on this developing rally.

According to Crypto Rover, on May 20, 2025, there is a significant supply shortage of both Bitcoin and Ethereum across major exchanges, indicating that this is not an optimal time to sell. Crypto Rover highlights that diminishing reserves on centralized platforms often precede price rallies, as seen in previous bull cycles (source: Crypto Rover on Twitter). For traders, the current on-chain data showing reduced BTC and ETH availability could signal heightened buying pressure and potential upward price momentum in the near term. This supply crunch is a critical factor for those considering short-term trading strategies or portfolio rebalancing in the crypto market.