Ethereum Exchange Balances Hit 9-Year Low Amid Big Fluctuations

Ethereum balances on exchanges have dropped to their lowest level in nine years, creating a sharp focus on the $3,700 support range. Data shows that investors are moving their coins away from trading platforms, while analysts warn that a breakdown below this level could trigger significant selling pressure

Ethereum Supply on Exchanges Drops Sharply

According to data from Glassnode, Ethereum held on exchanges has fallen from a peak of about 31 million ETH to 14.8 million ETH today. 

This is a 52 percent decline and the lowest figure recorded since 2016. The drop shows that many investors are pulling their coins away from exchanges and moving them into staking contracts, private wallets, or institutional storage.

The launch of the first Ethereum staking exchange-traded fund has also played a role, encouraging more holders to commit their coins to long-term staking. While this points to growing trust in Ethereum, it also leaves less liquidity on exchanges. 

With fewer coins available for trading, the market becomes more sensitive to sudden moves when either demand or selling pressure increases.

$3,700 Price Range Becomes Key Level

Market analyst Ted, also known as TedPillows, has highlighted that the $3,700 to $3,800 zone is a critical support level. He explained that a large number of leveraged positions are clustered around this area. If Ethereum falls below $3,700, those positions could be liquidated, leading to forced selling and sharper declines.

At the time of writing, Ethereum is priced at $4,011. The coin has slipped by around 0.33% in the last 24 hours and is down more than 10% over the past week. Earlier in the day, the price briefly touched $3,980 before recovering, but still trades under its recent close of $4,034.

In addition to this, Ethereum could be set for a major rally, with BitMine CEO Tom Lee predicting it may hit $10,000–$12,000 by the end of 2025, and possibly reach $15,000 if momentum strengthens.

Whales and Institutions Buy the Dip

While short-term risks remain, large buyers are using the pullback as an opportunity. Blockchain tracker Lookonchain reported that 16 wallets purchased 431,018 ETH between September 25 and 27. The value of these transactions is estimated at $1.73 billion.

Previous weeks also saw similar bulk purchases, including one worth $204 million. The latest inflows came from major firms such as Kraken, Galaxy Digital, BitGo, FalconX, and OKX. These moves show that while smaller traders may be cautious, institutional investors and whales continue to build their positions.

With exchange balances shrinking and support levels being tested, Ethereum is now at a crucial stage where both risks and opportunities are clearly in play.