ETH Supply on Exchanges Plummets as Whales Gobble Up the Dip - Bullish Signal for Crypto Markets

Ethereum's exchange reserves are hitting multi-year lows—and the big players aren't just watching.

The Great Exodus from Exchanges

ETH is vanishing from trading platforms at an alarming rate. Whales are pulling millions off exchanges, signaling a massive shift from speculative trading to long-term holding. This isn't just a dip-buy—it's a strategic accumulation.

Supply Shock Brewing

With less ETH available for sale, even modest demand could send prices soaring. Remember basic economics? Scarcity plus demand equals price pressure. Exchanges are becoming ETH deserts while private wallets fill up.

Smart Money Moves First

While retail investors panic-sell during corrections, institutional and whale wallets are loading up. They're not timing the market—they're removing supply from it entirely. This creates a structural imbalance that favors bulls.

The Cynical Take

Meanwhile, traditional finance is still debating whether crypto is 'real' while digital asset whales quietly build positions that would make hedge fund managers blush. They'll probably buy the ETF at the top.

When supply dries up and conviction buyers emerge, history suggests one outcome. This isn't speculation—it's simple arithmetic playing out in real-time.

Can Ethereum trading recover?

Ethereum open interest inched up from $17.4B to $17.7B in the past few days. However, the increase is mostly due to whale positioning. ETH retail trading remains subdued, with minimal expectations for a rally.

Despite this, whales are repositioning, and some are still holding aggressive long positions. Based on currently deployed liquidity, ETH is in a range between $3,000 and $2,700, with a larger accumulation of long positions.

Even the whale that shorted the market before October 11 holds the biggest long position on Hyperliquid, with a notional value of $600M. The whale, identified as Everett Jin, has continued to post collateral, despite carrying $39M in unrealized gains.

Over time, the whale expanded the long position, signaling at least speculative expectation that ETH may recover. Other whales on Hyperliquid have retained smaller positions after getting liquidated, with only two whales opening positions valued at over $100M.

ETH may close 2025 in the red

ETH is down over 11.5% in the year to date and may close in the red for the first time since 2022.

To date in December, ETH is down 1.48% after losing a net 28.9% for the quarter to date. Despite this, the October liquidations still weigh on the market.

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