According to Odaily Planet Daily, Michael Nadeau, founder of The DeFi Report, posted data on X, indicating that ETH's "supply shock" is happening. Since the third quarter, the ETH inventory on centralized exchanges (CEX) has dropped by 6.7%, and the current inventory has hit a new low since July 2016.

This figure is expected to continue to decline as ETH asset managers gradually begin to implement on-chain strategies to increase returns and the value of each ETH share. More funds shifting to the chain may trigger further reflexivity - as prices move in a positive direction, on-chain activity (and fundamentals) will also improve simultaneously.