Ethereum exchange reserves have fallen to their lowest level recorded in 2025, signaling strong holding sentiment among investors. Data indicates reserves decreased from 20.2 million ETH in March to 18.7 million ETH by August, occurring alongside a significant price surge from $1,750 to around $3,700.
On-chain analytics reveal a high degree of conviction among Ethereum holders. Approximately 75% of holders are displaying strong holding behavior, with 82% currently holding ETH acquired at lower prices, positioning them in profit. Large holders, often termed ‘whales’, control a substantial 55% of the circulating ETH supply.
Recent netflow data underscores the exodus, showing approximately $460.47 million worth of ETH withdrawn from exchanges. This decrease in readily available supply on trading platforms suggests a reduction in immediate selling pressure. Despite this outflow, transaction volumes remain robust at $79.12 billion, indicating healthy market activity.
Analysts interpret plummeting exchange reserves as a key indicator of reduced sell-side liquidity, contributing significantly to Ethereum’s ongoing price rally and reflecting robust underlying market strength. While Ethereum maintains a strong correlation with Bitcoin price movements, current dynamics highlight its independent growth potential within the bullish market trend.