Ether crossed the $3,000 barrier earlier this week. The digital asset is poised to reach its greatest weekly finish in 97 weeks thanks to the bullish price movement, which has marked its highest value in 22 months.

At the same time, centralised exchanges’ ether reserves have significantly decreased. According to Bitfinex analysts, “this net outflow indicates a strong supply crunch that could propel ether’s price further.”

According to the Bitfinex report, which cited statistics from CryptoQuant, centralised exchanges have reported net withdrawals of more than 800,000 ether, or around $2.4 billion, since the beginning of January. “This substantial decrease in the ether exchange reserve balance is highly bullish for the asset, possibly representing the strongest supply crunch for the asset since the Shapella upgrade,” said the experts.

According to the article, the ether that is being taken out of exchanges might be kept for a long time and staked, which would lower the amount accessible and possibly drive up the price.

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The rise in ether prices is ongoing.

Luke Nolan, a research associate at CoinShares, claims that the ether rise is connected to several significant advancements in the Ethereum ecosystem. These include the upgrade to Dencun, the possible launch of a spot ether ETF, and the debut of restaking platforms like EigenLayer.

“With the impending Dencun upgrade and the possible approval of a spot ether ETF in May, interest is turning to Ethereum.” Furthermore, in just three months, EigenLayer has amassed over $8 billion in TVL. The new restaking primitive has undoubtedly generated some enthusiasm, which may have contributed to a resurgence of Ethereum on chain activity, according to Nolan.

These changes are thought to be major drivers of ether’s comeback, particularly following a stretch of months during which its percentage growth behind that of bitcoin.

According to coin market cap, the price of ether has remained above $3,000 over the last 24 hours and is currently trading at $3,466 at 12:54 ET. The GM 30 Index, which is a selection of the top 30 cryptocurrencies, is currently at 125.67 after rising by 2.76% during the previous day.