Ethereum Drops 0.329% as Exchange Balances Hit 9-Year Low

Ethereum's latest price was $4019.54, down 0.329% in the last 24 hours. Ethereum balances on exchanges have dropped to their lowest level in nine years, creating a sharp focus on the support range. Data shows that investors are moving their coins away from trading platforms, while analysts warn that a breakdown below this level could trigger significant selling pressure. According to data from Glassnode, Ethereum held on exchanges has fallen from a peak of about 31 million ETH to 14.8 million ETH. This is a 52 percent decline and the lowest figure recorded since 2016. The drop shows that many investors are pulling their coins away from exchanges and moving them into staking contracts, private wallets, or institutional storage. The launch of the first Ethereum staking exchange-traded fund has also played a role, encouraging more holders to commit their coins to long-term staking. While this points to growing trust in Ethereum, it also leaves less liquidity on exchanges. With fewer coins available for trading, the market becomes more sensitive to sudden moves when either demand or selling pressure increases.

Market analyst Ted, also known as TedPillows, has highlighted that the support level is a critical support level. He explained that a large number of leveraged positions are clustered around this area. If Ethereum falls below this level, those positions could be liquidated, leading to forced selling and sharper declines. In addition to this, Ethereum could be set for a major rally, with BitMine CEO Tom Lee predicting it may hit by the end of 2025, and possibly reach if momentum strengthens.

While short-term risks remain, large buyers are using the pullback as an opportunity. Blockchain tracker Lookonchain reported that 16 wallets purchased 431,018 ETH between September 25 and 27. The value of these transactions is estimated at $1.73 billion. Previous weeks also saw similar bulk purchases, including one worth $204 million. The latest inflows came from major firms such as Kraken, Galaxy Digital, BitGo, FalconX, and OKX. These moves show that while smaller traders may be cautious, institutional investors and whales continue to build their positions. With exchange balances shrinking and support levels being tested, Ethereum is now at a crucial stage where both risks and opportunities are clearly in play.

Major firms file amendments for Ethereum spot ETFs, eye approval. Potential ETF approval anticipated within two weeks. Moves signal growing institutional interest in Ethereum. A series of S-1 amendments from notable financial firms like Franklin Templeton and Fidelity have been submitted for spot Ethereum ETFs. These amendments, expected to be approved soon, indicate regulatory progress and could catalyze significant institutional interest in Ethereum, potentially affecting broader crypto market dynamics. These amendments, viewed as positive for institutional players, specify collateralization − an often favorable condition for regulatory approval. Anticipation grows as approval is expected within two weeks. Such a timeline suggests regulatory processes may be well underway, reinforcing market interest in Ethereum and signaling potential shifts in its valuation. Should these ETFs gain approval, Ethereum may witness increased demand, driven by institutional participants eager to capitalize on the potential of digital assets.

Significant Ethereum ecosystem developments emerged in September 2025, highlighted by notable on-chain movements and strategic advancements. Co-founder Jeffrey Wilcke transferred 1,500 ETH to the Kraken exchange during late September. This transaction, valued at $5.99 million, generated discussion regarding potential motivations, though it aligned with Wilcke's pattern of gradual asset management observed in earlier transactions throughout the year. Contrasting this founder activity, substantial accumulation occurred among large holders. Over a two-day period, 15 major wallets collectively acquired 406,000 ETH, signaling robust institutional confidence. This aggressive accumulation follows a late August purchase of 260,000 ETH. Supporting this trend, on-chain data revealed the number of addresses holding over 10,000 ETH has grown significantly, surging from 850 to surpass 1,150 in recent months, mirroring patterns seen during previous major market cycles.

Looking ahead, the Fusaka upgrade scheduled for December 3rd represents a critical milestone. Central to this upgrade is the implementation of PeerDAS (EIP-7594), a protocol enhancement designed to substantially reduce data verification costs associated with Ethereum Layer-2 rollups. This technological advancement is expected to improve network scalability and transaction throughput, addressing persistent challenges faced by the ecosystem. Further strengthening Ethereum's position, institutional inflows into related financial products proved substantial. Exchange-traded funds attracted significant capital, with $33 billion flowing into these instruments during Q3 2025, reflecting growing institutional adoption partly influenced by evolving regulatory frameworks.