ETH Is Disappearing from Exchanges…What's Happening to Ethereum?
Ethereum (ETH) has managed to hold the $2,000 level amid heightened volatility, while exchange-held balances have plunged to their lowest level since 2016, prompting interpretations that the market structure is undergoing a shift.
According to cryptocurrency-focused media outlet Bitcoinist on February 11 (local time), Ethereum’s exchange balances recorded their steepest decline in years during the recent price correction phase. On-chain data analyst CryptoRus noted via X that “the amount of ETH remaining on centralized exchanges has fallen to mid-2016 levels,” adding that “considering the current size of the ecosystem, this is an unusual phenomenon.”
The decline in Ethereum held on exchanges suggests a reduction in assets waiting for short-term selling. This is interpreted as investors moving their holdings off exchanges for long-term storage, staking, or self-custody. Such a trend is typically viewed as a signal that immediate selling pressure is easing and the share of long-term holders is increasing.
Notably, while Bitcoin has returned to some exchanges over the same period, Ethereum has been quietly flowing out of exchanges. This is seen as evidence that investors place greater confidence in Ethereum’s medium- to long-term value rather than short-term price movements. Although over-the-counter (OTC) volumes are also increasing, their share relative to total Ethereum supply remains limited.
Market participants are paying close attention to the possibility that if liquidity tightens simultaneously on both exchanges and OTC markets, the price discovery process could accelerate and become more abrupt. Should demand rebound, a shortage of sell-side supply could lead to faster-than-expected price movements.
Accumulation by institutional investors is also continuing. According to on-chain analyst Ash Crypto, publicly listed company Bitmine Immersion recently purchased an additional approximately 20,000 ETH, with the transaction valued at about $41.08 million. The company is reported to have acquired a total of $83.45 million worth of Ethereum in the past week alone.
Following this additional purchase, Bitmine’s Ethereum holdings have expanded to roughly $9.19 billion, accounting for about 3.6% of the total Ethereum supply. The market interprets this move as a clear signal of institutions’ intent to accumulate Ethereum as a long-term strategic asset, even amid volatile conditions.
*Disclaimer: This article is for investment reference only, and the publisher bears no responsibility for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.*
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