Ethereum Supply on Exchanges Hits Multi-Year Lows

The balance of Ethereum ($ETH) held on centralized exchanges has fallen to a new multi-year low, with more than 31 million $ETH withdrawn in February alone, marking the largest monthly outflow since November. The supply contraction comes as $ETH continues to struggle to establish sustained momentum above the $2,000 level.

According to on-chain analysis highlighted by Arab Chain, approximately 31.6 million $ETH left major exchanges during the month. Binance accounted for the largest share, with roughly 14.45 million $ETH withdrawn, nearly half of the total.

OKX followed with around 3.83 million $ETH, while Kraken recorded close to 1.04 million $ETH in outflows. Sustained withdrawals reduce the amount of Ether readily available for spot trading, as assets moved to private wallets or staking platforms typically become less liquid in the short term.

Data from CryptoQuant further shows Binance’s $ETH reserves have declined to approximately 3.46 million $ETH, the lowest level since 2020. In previous market cycles, exchange reserves peaked above five million $ETH before entering a gradual downtrend characterized by lower highs. The latest reading extends that structural decline, reinforcing the narrative of tightening exchange supply.

If retail accumulation continues and larger-scale selling moderates, positioning across participant groups could become more aligned. In that scenario, reduced spot liquidity may amplify price movements should $ETH secure a sustained breakout above the $2,000–$2,150 zone.

Source: On-chain data from CryptoQuant

Disclaimer: This content is for informational purposes only and does not constitute financial advice or an investment recommendation. Cryptocurrency markets are highly volatile and involve substantial risk.

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