Ethereum supply on Binance falls to lowest since May 2024 as whales bet bullish

The supply of the biggest altcoin, Ethereum, is drying up on the biggest crypto exchange as bulls take over. Data from Binance shows that  Ethereum’s exchange supply ratio has fallen sharply in recent weeks. It slipped to 0.034, the lowest since May 2024.

This drop comes as ETH trades above $4,700, depicting a clear bullish behavior. Ether price has spiked by more than 13% over the last seven days. However, the cumulative digital assets market had printed green indexes all around as Bitcoin breached $127,000 for the first time. 

ETH bulls dig in as supply falls

A low supply ratio typically indicates coins are being moved to cold wallets or long-term holdings. This reduces the immediately sellable supply. As of now, traders seem to be confident in further upside while opting to HODL rather than cash out, stated CryptoQuant analysts.

Historically, similar periods of declining exchange supply have often resulted in major price rallies, and that too when volume remains stable.

Market watchers note that if ETH’s supply ratio rebounds above 0.038, then it could signal renewed profit-taking. For now, the current balance between supply and demand suggests accumulation. Analysts eye a potential move toward $5,000 in Q4 2025, assuming the price remains above $3,800.

Ethereum price has spiked by 75% over the last 90 days, outperforming Bitcoin with a huge margin. It is trading at an average price of $4,634 at press time. Its 24-hour trading volume is up by 26% to stand at $46.5 billion.

ETH ETFs and treasuries lock 12.5M Ether

Ether’s institutional footprint continues to grow. Data from Strategic ETH Reserve shows that treasury companies and spot ETFs now hold 12.48 million ETH. This is now over 10% of the total Ether supply. Treasury companies HODL 5.66 million ETH (4.68% of supply) while spot ETH ETFs account for 6.81 million ETH (5.63% of supply).

This reflects an increasing confidence in Ethereum as a yield-generating asset among investors. ETH-linked ETF inflows have surged in recent months as public firms like BitMine and SharpLink are following a playbook reminiscent of Bitcoin treasury accumulation.

October gave a strong start to US spot ETH ETFs. They posted more than $800 million in net inflows for the month. It is up from $285.7 million in September and on the way to match the $3.9 billion in August. Sharplink reported that its unrealized profits have now surpassed $900 million since launching its ETH treasury strategy in early June.

Amid all the positive runs, a dormant whale has been active over the past two days. It offloaded 30,000 ETH (worth $138.4 million) to exchanges at an average price of $4,612. It moved 23,278 ETH (worth $109.3 million) into two new wallets.

This whale originally received 123,687 ETH (worth $19 million at an average price of $153.9) from an exchange in April 2019. Despite the recent sell-offs, the whale still holds 70,785 ETH (worth $332.4 million) across four wallets.

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