According to Crypto Rover, Ethereum ($ETH) is currently experiencing a supply shock, as highlighted by on-chain data showing a significant reduction in available ETH on exchanges (source: Crypto Rover on Twitter, May 9, 2025). This contraction in circulating supply often precedes upward price movement, making it a critical signal for traders seeking entry points. Reduced exchange reserves suggest increased long-term holding and accumulation, which can tighten liquidity and amplify price reactions to buying pressure. Traders should monitor exchange flows and on-chain metrics closely to identify optimal trading strategies as the ETH supply shock develops.

According to AltcoinGordon, the current market conditions are prompting traders to revisit old Metamask wallets, indicating a potential liquidity crunch or loss aversion strategy among traders.