The world of cryptocurrency is always in flux, with prices and market trends shifting regularly. But a recent development in the world of Ethereum has caught the attention of many traders and investors alike: the balance of available Ether (ETH) across crypto exchanges has dropped to a five-year low. On May 26, the total amount of Ether held on exchanges was just 17.86 million, which is a drastic decline from the usual supply. This drop in exchange supply of ETH is significant because it has not been seen since April 2018. According to Glassnode data, only 14.85% of the total Ether supply is currently held on centralized exchanges, compared with the 25–26% of supply held during the 2021 bull run. This change could have implications for the future of Ethereum trading. Two main events could have influenced the decline in ETH balances on centralized exchanges recently. The first is the collapse of the FTX crypto exchange, prompting many users to move their crypto assets from exchange wallets to self-custody wallets. The second event is the Shapella upgrade, which made way for thousands of validators to withdraw their staked ETH. However, contrary to popular belief, only a minority of validators decided to unstake, while the majority only withdrew their staking rewards. The movement of assets away from exchanges is considered a bullish sign, indicating that traders are not looking to sell at the current price. In Ethereum’s case, re-staking ETH is the most apparent reason for the declining exchange supply. Additionally, major crypto exchanges like Binance, Bitfinex, Kraken, and others that supported the Shapella upgrade saw a significant outflow of ETH from their exchange wallets, leading to the current balance decline. As with any market trend or shift, there is no way to predict how Ethereum prices will move in the future. However, this recent decline in exchange supply of ETH is a promising sign for traders and investors who are bullish on Ethereum’s long-term prospects.