Ethereum withdrawal volumes soar to a 3-year high—there’s less and less ETH on exchanges. Is this a sign of the next market cycle?
On-chain data shows that withdrawals from Ethereum trading platforms are hitting a three-year high. CryptoQuant analyst Darkfost noted that on July 1, Binance recorded 166,000 withdrawal transactions in a single day—its highest since March 2023. Since May, more than 3 million ETH have flowed out of Binance, and the average number of withdrawal transactions in September has also exceeded 90,000, indicating clear signs of longer-term accumulation.
Meanwhile, exchange reserves are continually shrinking: Binance’s ETH balance has fallen to about 3.3 million ETH, approaching the level seen in December 2020. Across the entire network, exchange reserves are at their lowest since 2016. On September 18, ETH briefly touched $2,630, its highest since the end of January. In the prior 48 hours, more than 116,000 ETH (about $300 million) left exchanges, further tightening short-term sellable supply.
Analysts believe that high withdrawals combined with falling reserves reflect investors shifting from short-term trading to long-term holding. Along with inflows into ETFs, ETH may continue to show a relatively bullish bias. However, withdrawals could also be directed to purposes such as staking or DeFi, so the signal is not unidirectionally bullish. The next step is to watch whether the price can hold above the $2,600 support level.
On-chain data shows that withdrawals from Ethereum trading platforms are hitting a three-year high. CryptoQuant analyst Darkfost noted that on July 1, Binance recorded 166,000 withdrawal transactions in a single day—its highest since March 2023. Since May, more than 3 million ETH have flowed out of Binance, and the average number of withdrawal transactions in September has also exceeded 90,000, indicating clear signs of longer-term accumulation.
Meanwhile, exchange reserves are continually shrinking: Binance’s ETH balance has fallen to about 3.3 million ETH, approaching the level seen in December 2020. Across the entire network, exchange reserves are at their lowest since 2016. On September 18, ETH briefly touched $2,630, its highest since the end of January. In the prior 48 hours, more than 116,000 ETH (about $300 million) left exchanges, further tightening short-term sellable supply.
Analysts believe that high withdrawals combined with falling reserves reflect investors shifting from short-term trading to long-term holding. Along with inflows into ETFs, ETH may continue to show a relatively bullish bias. However, withdrawals could also be directed to purposes such as staking or DeFi, so the signal is not unidirectionally bullish. The next step is to watch whether the price can hold above the $2,600 support level.
