Ethereum Withdrawals Top 1M as Supply on Exchanges Hits Five-Month Low, Says Analyst

ETH reserves fell from 20.2M to 18.7M since March, aligning with a price surge from $1,750 to $3,700 amid lower sell pressure.

75% of ETH holders held more than a year; 82% are in profit, showing strong conviction and reduced urge to sell during the rally.

$460M in ETH left exchanges last week; whale activity and $79B in transactions support ongoing bullish momentum.

Over 1 million Ethereum (ETH) have been pulled from exchanges in the past two weeks, according to analyst Ali. This coincides with a steady decline in ETH exchange reserves from March to early August

Reserves fell from over 20.2 million ETH to just 18.7 million ETH as of August 1, 2025. At the same time, Ethereum's price climbed from roughly $1,750 to $3,700, a notable inverse relationship between supply on exchanges and market value.

Exchange Reserves Drop as Price Climbs

The declining exchange reserve trend began in March and continued through early August. This five month pattern shows a consistent reduction in ETH available on centralized platforms

Ethereum Exchange Reserves chart, Source: Ali on X

Notably, the current 18.7 million ETH reserve is the lowest level recorded in 2025 so far. Meanwhile, Ethereum's price surged during this period. The asset rallied from around $1,750 in March to reach a recent high near $3,700

This clear contrast suggests that fewer ETH tokens on exchanges may be linked to the growing market demand. Fewer tokens available for sale could reduce downward price pressure.

On-Chain Metrics Show Strong Holding Sentiment

According to IntoTheBlock, 75% of ETH holders have kept their tokens for more than one year. Another 22% held between one and twelve months, while only 3% held for less than a month. These figures show a strong long term holding trend among investors.

Ethereum Holders Chart, Source: IntoTheBlock

Additionally, 82% of all ETH holders are in profit, while only 12% are at a loss. This further supports the idea that holders are not in a rush to sell, especially with the current upward trend in prices. Moreover, 55% of ETH supply is concentrated in the hands of large holders, indicating market strength from whales.

Netflows and Transaction Volume

Over the past seven days, netflows recorded $460.47 million in ETH moving off exchanges. This aligns with the continued withdrawal trend and supports the ongoing supply decline. The large transaction volume, totaling $79.12 billion in the same period, points to sustained activity from institutional or whale level investors.

Transaction demographics show nearly even global interest, 53% of activity came from the West, while 47% originated in the East. Ethereum’s correlation with Bitcoin also is moderate to strong, at 0.7, based on IntoTheBlock data.

Ethereum Supply Shrinks as Demand Stays Active

Ethereum’s decreasing exchange reserves coincide with a consistent rise in price, long term holding behavior, and large scale transactions. The data suggests an ongoing trend of reduced sell side pressure alongside active global engagement. As long as this pattern holds, Ethereum continues to show strong on-chain fundamentals and increased market interest.

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