Ethereum (ETH) holdings on centralized exchanges have plummeted to a record low of 8.8%, according to analyst Milk Road, as reported by Cointelegraph. This marks the lowest level since Ethereum's inception in 2015, with a 43% decrease in exchange-held ETH since July. The decline coincides with increased Digital Asset Treasury (DAT) purchases, suggesting a shift of ETH into less liquid areas such as staking, Layer 2 networks, and long-term custody. In contrast, Bitcoin holdings on exchanges remain higher at 14.7%. Milk Road highlights that the reduced availability of ETH on exchanges could lead to a supply shortage, potentially driving up prices. Despite current low market sentiment, the tightening supply may influence future price movements as the market adjusts to the reduced availability of ETH.