The recent approval of spot Ethereum (ETH) exchange-traded funds (ETFs) in the United States has triggered a significant exodus of Ether from centralized crypto exchanges. Data shows that over $3 billion worth of Ether, equivalent to around 797,000 ETH, has been withdrawn from these platforms, potentially leading to a supply shortage in the near future.

CryptoQuant's data reveals that lower exchange reserves indicate a reduction in coins available for immediate sale. Investors are moving their Ether to self-custody, suggesting they have alternative plans besides selling their holdings right away. Glassnode's data, shared by BTC-ECHO analyst Leon Waidmann, highlights that only 10.6% of the circulating Ether supply remains on exchanges, the lowest level in years.

The approval of Ether ETFs has sparked speculation about Ether reaching a new all-time high (ATH). Bloomberg ETF analyst Eric Balchunas believes Ether ETFs could launch by late June, potentially increasing demand and driving prices upward. Analysts anticipate Ether exceeding its $4,870 all-time high, mirroring Bitcoin's post-spot ETF surge. Ether's potential price advantage stems from lower structural sell pressure compared to Bitcoin, attributed to Ethereum validators' lower operational costs.

However, concerns linger regarding Grayscale's Ethereum Trust (ETHE), which manages $11 billion. If ETHE follows the Grayscale Bitcoin Trust (GBTC) pattern, which saw substantial outflows post-approval, it could impact Ether's price dynamics.

Ether's current trading price at $3,794 reflects a slight 0.13% dip in the past 24 hours and a 23% drop from its all-time high, as per CoinMarketCap. Market sentiments are influenced by reduced Ether reserves on exchanges and the looming launch of Ether ETFs, signaling a potential upcoming bullish trend for the second-largest cryptocurrency by market capitalization.