Ethereum Exchange Supply Hits 9-Year Low, Heres Implication for ETH Price

Binance shows the same pattern. The exchange supply ratio on Binance is around 0.0325, a figure that is lower than recent months.

As the largest exchange by liquidity, changes on Binance often reflect broader market behavior. Fewer ETH coins on Binance mean reduced supply for spot trades.

Despite these shifts, Ethereum price action remains calm. ETH price trades near $2,960, a level that reflects a balance between buyers and sellers.

The falling exchange supply has not triggered a sharp rally or decline. Instead, it points to a market waiting for a clearer direction.

ETH Whales Move Funds Away From Exchanges

Large Ethereum holders have added to the decline in exchange supply. One whale recently unstaked all Ethereum holdings and moved about $1,800,000,000 worth of ETH.

The funds were sent to seven new wallets, a movement that happened in a single day.

Such large transfers often draw attention, but they do not always signal selling.

Moving ETH to new wallets can mean long-term storage or internal reorganization. Still, when whales remove funds from exchanges, it reduces the liquid supply available for trading.

Whale activity can affect short-term sentiment as some traders view withdrawals as a sign of confidence.

ETH Whale Activity Spotlight |Visions for Ethereum Simplicity | Source: Vitalik Buterin

This approach could help strengthen decentralization over time. The comments followed discussions about limiting code complexity.

Reducing complexity may lower barriers for new contributors and it may also help improve long-term network resilience.

These ideas do not affect ETH price directly. However, they shape how long-term holders view Ethereums direction.

Combined with low exchange supply and steady prices, the focus on simplicity adds another layer to the current outlook.

Ethereum now sits in a phase marked by low exchange balances, cautious trading, and internal reflection.

Whether this leads to price movement remains uncertain. For now, the data points to patience across the market.