According to @AltcoinGordon, ETH held on centralized exchanges continues to trend lower, signaling reduced immediately sellable supply, source: @AltcoinGordon. Historical on-chain studies show that declining exchange reserves often align with lower spot sell pressure and can support price during demand upswings, source: Glassnode research. Traders should validate the signal by checking ETH exchange reserves, netflows, and holdings across major venues using Glassnode and CryptoQuant dashboards before positioning, source: Glassnode; CryptoQuant. A prudent setup is to pair shrinking exchange balances with rising spot cumulative volume delta and favorable perp funding or basis to confirm demand, source: CryptoQuant derivatives analytics. Structural factors like staking and L2 adoption have contributed to a multi-year downtrend in ETH exchange balances since the Merge, providing context for the current signal, source: Glassnode research.