The cryptocurrency market is experiencing a notable shift in Ethereum’s liquidity, with a significant decrease in its supply on the Binance exchange. This contraction in readily available ETH, dropping to its lowest point since May 2024, coincides with a robust price surge and heightened institutional interest, signaling strong bullish sentiment among investors.
Declining Exchange Supply and Bullish Indicators
Data indicates that Ethereum’s exchange supply ratio has fallen to 0.034 on Binance, suggesting that a larger proportion of ETH is being moved into long-term holdings or cold storage rather than being held for immediate trading. This trend, often interpreted as a sign of investor confidence in future price appreciation, has historically preceded substantial rallies, especially when trading volumes remain stable. Analysts suggest that a sustained supply ratio below 0.038 could reinforce this accumulation phase.
Institutional Accumulation and ETF Impact
The growing influence of institutional investors is further underscored by the substantial holdings in ETH-based Exchange Traded Funds (ETFs) and corporate treasuries. These entities collectively control over 12.4 million ETH, representing more than 10% of the total supply. Treasury companies account for approximately 5.66 million ETH, while spot ETH ETFs hold around 6.81 million ETH. This increasing allocation reflects a perceived value in Ethereum as a yield-generating asset, with recent inflows into US spot ETH ETFs reaching significant figures, exceeding $800 million in early October.
Market Dynamics and Whale Activity
Ethereum’s price performance has been particularly strong, outperforming Bitcoin over the past 90 days with a 75% increase. At present, ETH is trading around $4,634, with a notable 26% increase in 24-hour trading volume. Amidst this positive market momentum, activity from a dormant large holder has been observed. This whale recently divested approximately 30,000 ETH, valued at $138.4 million, to exchanges at an average price of $4,612. A portion of these funds was then redistributed to two new wallets. Despite this sell-off, the whale still retains a significant ETH holding of approximately 70,785 ETH across multiple wallets.
Maxwell Reed is the first editor of Cryptovista360. He loves technology and finance, which led him to crypto. With a background in computer science and journalism, he simplifies digital currency complexities with storytelling and humor. Maxwell began following crypto early, staying updated with blockchain trends. He enjoys coffee, exploring tech, and discussing finance’s future. His motto: “Stay curious and keep learning.” Enjoy the journey with us!