Ethereum Balances Plummet on Exchanges

Since early July, exchange-held ETH has dropped by around 43%. Analysts note that activities like staking, layer-2 usage, and treasury acquisitions are moving Ethereum off exchanges. Milk Road, a macro-investment research platform, highlighted that this represents Ether’s “tightest supply environment in history.” For comparison, Bitcoin reserves on exchanges still stand at 14.7%.

Momentum Indicators Signal Strength

On-Balance Volume (OBV) shows hidden buying strength despite short-term price resistance. Analyst Sykodelic emphasized that while price faced rejection, OBV often predicts upward movements reliably. Market sentiment may appear cautious, but a tightening supply could drive price action in the near future.

ETH Maintains $3,000 Support

Ether prices have largely remained above $3,000 over the past five days, struggling to break the $3,200 resistance. The ETH/BTC pair recently broke its downtrend, signaling potential relative strength against Bitcoin. Investors are closely watching these levels for signs of further upside.

Key Highlights:

• Exchange-held ETH drops to the lowest level since 2015.

• Staking and treasury purchases pull Ether off exchanges.

• OBV indicator signals hidden buying strength.

• ETH consolidates around $3,000 support.

• ETH/BTC breaks downward trend line, showing strength.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Ether Exchange Reserves Hit Lowest Since 2015 appeared first on Coin Engineer.

On June 10 alone, a net inflow of $125 million was recorded. The largest contribution came from BlackRock’s ETHA ETF with $80.59 million. These purchases clearly indicate steady demand on the Ethereum ETF front. Although ETF investments currently have limited impact on Ether’s price, on-chain data suggests potential price pressure as most of these investments involve direct spot purchases. Additionally, there has been no net outflow during this entire period. 

Institutional Demand Tightens ETH Supply 

Alongside the ETF effect, Ethereum’s on-chain metrics point to a supply squeeze. The amount of Ether held in current exchange wallets dropped to 16.33 million ETH — the lowest level in history. Meanwhile, 28.3% of total ETH supply is staked. These data show that the majority of circulating supply is not readily sellable. 

Although Ethereum network fees remain low, on-chain revenues have declined due to rollup-focused upgrades. In the last 30 days, the network generated only $43.3 million in revenue. Thus, concerns about network sustainability persist. However, “blob” upgrades reducing rollup data costs have accelerated growth in the Layer 2 ecosystem. For example, DEX transactions on networks like Base and Arbitrum have reached a total volume of $70 billion. 

Ethereum Maintains Its Leadership 

Ethereum’s base layer holds a total locked value (TVL) of $66.6 billion, significantly outpacing rival networks. Ethereum commands 61% market dominance based on TVL, while its closest competitors hold only 14% combined. 

Pendle, Ethena, and Spark protocols have led TVL growth. During the same period, BNB Chain fell by 6% and Solana by 2%, indicating unsustainable deposits outside Ethereum. Between May 7 and 14, Ether’s price surged 48%. This rally, combined with increased demand, created an imbalance between current holders and potential buyers, raising the likelihood of breaking the $2,900 resistance soon. 

The momentum Ethereum has gained on the ETF side continues. Supported by on-chain data, institutional buying keeps long-term price growth expectations alive. As exchange supply decreases, the amount of ETH locked through staking and ETFs steadily rises. 

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Institutional Demand for Ethereum Spot ETFs Explodes: 17th Day of Inflows in a Row appeared first on Coin Engineer.