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Key Insights:
- Ethereum exchange supply drops to record low at 4.893%.
- Whales accumulate 450K ETH amid rising institutional demand.
- ETH holds $2.6K despite profit-taking and resistance near $2.7K.
Ethereum’s exchange supply has dropped to its lowest point in history. Just 4.893% of the total ETH supply now sits on centralized trading platforms, according to data from Santiment. This shift in holdings comes as the asset trades above $2,600, holding gains despite recent market volatility.
Ethereum Exchange Balances Shrink, Staking and Accumulation Rise
Santiment data shows that exchange balances have never been this low in over 10 years. Investors have pulled more than 15.3 million ETH from exchanges in the past five years. Much of that has moved into staking contracts following Ethereum’s switch to proof-of-stake.
The trend suggests lower short-term selling pressure. Fewer tokens on exchanges usually mean fewer sell-offs during corrections. At the same time, large investors are buying. Whale wallets holding between 10,000 and 100,000 ETH added 450,000 ETH in the last month, according to CryptoQuant.
This accumulation has continued even as the price shows resistance near the $2,700 mark.
ETH Price Faces $2.5K Resistance as Volume Spikes
Ethereum has recovered strongly from its April low of $1,385. It now trades around $2,603 after peaking at $2,730 last week. But price action near $2,500 has become volatile.
IntoTheBlock data shows a large supply zone between $2,348 and $2,548. Investors bought over 70 million ETH at those levels. This often leads to strong reactions when prices return to that range.
Santiment data shows traders booked over $300 million in profits and $60 million in losses over the last two days. On-chain analyst ShayanMarkets says the futures market shows signs of overheating.
Big Players Keep Buying
While smaller investors appear to be taking profits, institutions are buying the dip. BTCS, a Nasdaq-listed firm, bought 3,450 ETH this week for $8.42 million. The company now holds 12,500 ETH in total.
Abraxas Capital also increased its ETH exposure. It added 46,295 ETH on Monday and has acquired over 350,000 ETH since May 7, according to Lookonchain.
These moves show strong demand from funds, even with ETH near resistance. At the same time, whale wallets are still accumulating, according to CryptoQuant data.
Meanwhile, Ethereum co-founder Jeffrey Wlicke briefly caused a spike in bearish sentiment after transferring almost his total ETH balance of 105,737 ETH to crypto exchange Kraken on Tuesday. After a few hours, nearly the same amount of ETH was transferred from Kraken to eight separate new addresses, indicating his earlier transfer wasn’t an intention to sell.
Breakout Still Possible as Bullish Patterns Form
ETH price reclaimed the 0.618 Fibonacci level at $2,438. It now faces resistance near $2,800. If it clears that, $3,000 and $4,114 are next.
The RSI stays above 70, pointing to strong buying. MACD indicators also show bullish momentum. Earlier this month, ETH formed a Golden Cross on the 12-hour chart—a pattern that often signals the start of a rally.
Ethereum is holding steady above $2,600 despite heavy profit-taking. With record-low exchange balances and strong institutional demand, ETH may be preparing for its next move. A break above $2,800 could open the path to $4,000—if bulls can maintain momentum.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
