With the departure of Ethereum’s native token, Ether, from exchanges in February, a total of over 31 million ETH was withdrawn from central exchanges. This development marks one of the largest monthly outflows in recent years, and market players are focusing on the possible effects on the price of stock market reserves, which are now at historical lows.
ETH Withdrawn from Exchanges and Reserve Levels
According to data from crypto analyst Arab Chain, the total amount of Ether released from exchanges in February was recorded as 31.6 million. While approximately half of this movement took place on the Binance exchange, it was stated that 14.45 million ETH was withdrawn from there. OKX experienced an outflow of approximately 3.83 million Ether, while Kraken experienced an outflow of 1.04 million Ether. CryptoQuant data revealed that Binance’s Ether reserves have fallen to the lowest level since 2020 and are currently around 3.46 million ETH.
Moving coins from exchanges to private wallets or staking platforms leads to a decrease in liquidity in the spot market. This may cause sharper price reactions, especially during sudden buying waves. The current reserve decrease also draws attention in this respect.
Market Dynamics: Small Investors Are Buying, Large Investors Are Selling
According to Hyblock data, the cumulative purchase amount in transactions with a volume between 0 and 10,000 dollars is around 95 million dollars. This shows that smaller investors continue to take positions on the buy side. In contrast, the cumulative figures for transactions of $10,000–$100,000 and above are close to minus 162 million and minus 357 million, respectively. In other words, the large investor group exhibited a net sales trend in the same period.
The total volume of open positions in the market has been around 9.41 billion dollars recently. This figure approached the level of 10 billion dollars at the end of February. While leverage decreases, Ether is observed to consolidate in the $1,900–$2,000 band.
Decreasing Supply and Potential Price Scenarios
The downward trend of stock exchange reserves has been continuing for a while, especially on Binance. This downward trend continued in February. It is considered that the contraction in supply in the spot market may be more decisive on the price compared to previous periods in case of a sudden increase in demand.
On the other hand, while the buying momentum of small investors continues, the selling trend of large investors continues. It is stated that if the sales of major players slow down in the future and retail demand maintains upward pressure, there may be a significant change in the balance of demand and supply.
Currently, Ether is trading at $1,973. While it is stated that the price range of 2,000–2,150 dollars stands out as an important resistance, possible price movements are closely monitored if this range is permanently exceeded in the market and the reserve remains low.
