The world’s second-largest crypto asset by market cap has had a rough couple of weeks. But its exchange reserves have dropped to around 14.5 million ETH as of November 2, levels last seen in 2016.
That’s a sharp decline from the 2020 peak of roughly 35 million, meaning about 20.5 million Ethereum, or 58.6%, has left tracked exchanges, according to CryptoQuant.
Supply Shock?
Binance is seeing a similar trend, as its reserves fell to 3.08 million ETH, approaching levels last recorded in late 2020. Compared with its 2025 peak of 4.9 million, the exchange has lost around 1.82 million, a 37.1% drop. Binance now holds approximately 21.2% of total exchange reserves, while the remaining 11.42 million ETH sits across other tracked platforms.
The decline means there is considerably less ETH readily available for spot selling. Lower exchange reserves don’t guarantee a price increase, but they could ease selling pressure and create more favorable conditions for price appreciation if buying demand picks up. With fewer coins sitting on exchanges, renewed buying could also have a stronger impact on ETH’s price.
Crypto Patel said that Ethereum, currently around $2,245, is approaching an important decision zone. The analyst believes current levels offer a good entry opportunity, but the preferred accumulation range is between $1,800 and $1,900, where a Bullish Order Block and Fair Value Gap overlap. The analyst wants to see a liquidity sweep and bullish confirmation before entering. If the setup plays out as expected, their long-term price targets are $2,700, $3,200, $4,400, $6,000, and $10,000.
Persistent ETF Outflows
But the institutional side of things continues to be gloomy. US spot Ethereum ETFs recorded their worst month since launch, with investors pulling out $1.61 billion in October, according to SoSoValue data. This surpassed the previous record of $1.42 billion in outflows set last November. October was particularly rough, as the funds saw just three days of net inflows. These were October 13, 21, and 23, bringing in only $24.84 million, $14.96 million, and $4.35 million, respectively.
The selling pressure also carried into November, with another $139.8 million withdrawn on the 2nd.
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