Ethereum exchange reserves fall to a fresh multi-year low – is ETH price explosion next?

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As Ethereum (ETH) price continued to strengthen against Bitcoin (BTC) over the past two months through September 8, the altcoin’s supply on all cryptocurrency exchanges has fallen to a fresh multi-year low.

As of Tuesday, the supply of Ethereum on all crypto exchanges was at 14,882,226.7  ETH, according to data from CryptoQuant.

Ethereum reserves on all exchanges. Source: CryptoQuant

The supply of Ethereum on all exchanges has been on a gradual decline since July 1, 2025, when it was at around 21,301,177.2 ETH. As such, about 6,418,950.5 ETH has been withdrawn from all crypto exchanges over the past 14 months.

The exchanges’ reserves for Ethereum have dropped to a fresh multi-year low as the altcoin’s supply on Binance slipped to approximately 3.74 million ETH, marking its lowest level in three months. 

ETH reserves on Binance. Source: CryptoQuant

Ethereum reserves on exchanges fall amid renewed institutional demand

This notable decline in Ethereum supply on all crypto exchanges has coincided with renewed demand from institutional investors. For instance, United States spot ETH exchange-traded funds (ETFs) have recorded roughly $2.345 billion in net cash inflow since July 1, holding assets valued at $15.57 billion at the time of publication, based on metrics from SoSoValue.

Spot ETH ETFs. Source: SoSoValue 

Notable demand for Ethereum is reflected in the rising number of total staked ETH. At the time of writing, about 43.1 million ETH, representing 35.91% of its total circulating supply, has been staked, as per updates from CryptoQuant.

Total ETH staked. Source: CryptoQuant

What’s next for ETH price?

As the supply of Ethereum on exchanges fell to a multi-year low, amid its renewed institutional demand, crypto analyst Ali Martinez expects a rally towards $2,723. 

Martinez argued that ETH’s UTXO Realized Price Distribution (URPD), an on-chain metric that shows the amount of a crypto that last moved within specific price ranges hence revealing where investors acquired their coins, shows a strong support level around $2,475 and a resistance level near $2,723. 

ETH’s URPD. Source: Glassnode

“Ethereum is sitting on a major support zone around $2,475, where roughly 2.86 million ETH have previously changed hands. As long as this level holds, the path toward $2,722 remains relatively clear. The real test comes between $2,723 and $2,822, where more than 10 million ETH were transacted,” Martinez noted.

If the supply of ETH on all crypto exchanges continues to reduce, amid rising institutional demand, it could create a supply squeeze that may drive ETH higher.

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