- Ethereum exchange reserves have fallen to about 16 million ETH, the lowest in seven years.
- The drop in exchange holdings could tighten supply and increase price volatility soon.
- Ethereum price traders near $2500 while trading volume shows strong market activity.
Ethereum exchange balances have reached a seven-year low, raising concerns over a potential supply shock. Data from Glassnode reveals that total ETH held on exchanges has dropped from over 34 million in late 2020 to around 16 million by mid-2025. This sharp decline coincides with volatile price movements and changing market dynamics. With ETH prices holding firm near $2,700, market watchers question whether continued outflows could tighten supply and spark price rallies.
Steady Decline in Exchange Reserves Signals Reduced Selling Pressure
Ethereum’s exchange reserves peaked above 32 million in late 2020 and have steadily decreased since then. By late 2021, the total fell to nearly 29 million ETH, even as prices reached approximately $4,800. After that, exchange balances plummeted further from about 28 million in early 2022 to under 18 million by late 2023. The latest figures indicate balances around 16 million ETH, the lowest level since 2018.
Seeing this withdrawal, traders can tell that less ETH is being sent to exchanges, and investors are holding more through staking. Thus, the pressure to sell on cryptocurrency exchanges has declined significantly. A lower supply on exchanges may cause liquidity to tighten, particularly when demand also increases. Therefore, this type of investment may result in increased price volatility in the near future.
Related: Ethereum’s EIP-7702 Feature Abused in Wallet-Draining Attacks
Market Metrics Reflect Ethereum’s Ongoing Resilience Amid Volatility
At press time, Ethereum trades near $2,487.32, representing a 34.15% decline over the past year, according to CoinMarketCap. Despite this drop, the market capitalization stands at $300.27 billion with a marginal decrease of 0.36%. Trading volume rose by 17.96% in the last 24 hours, reaching $14.15 billion, which accounts for 4.71% of the total market cap. Additionally, the fully diluted valuation aligns closely with $300.29 billion.
On the one-year chart, the price jumped to over $4,000 in November 2024 and then fell sharply, dropping below $1,500 in April 2025. Recently, Ethereum has recovered and is now trading at around $2,500. The amount of Ethereum trading volume tends to remain high, increasing as the prices move.
