Ethereum News Today: Ethereum Exchange Reserves Fall to 2025 Lows as Long-Term Holding Rises 75%

Ethereum’s exchange-reserve levels have fallen to the lowest in 2025, signaling a shift in investor behavior toward long-term holding and sustained market demand. Over the past five months, the amount of ETH stored on exchanges has declined from 20.2 million to 18.7 million, a reduction of 1.5 million ETH [1]. This decline coincides with a sharp price increase, with Ethereum’s value rising from $1,750 in March to $3,700 by August 2025 [1].

On-chain data reveals strong conviction among ETH holders, with 75% holding their tokens for more than a year. Additionally, 82% of these holders are currently in profit, reducing the likelihood of selling during the current price rally [1]. Large holders, often referred to as "whales," control 55% of the total supply, reinforcing the strength of market sentiment and investor confidence [1].

Recent netflow data shows $460.47 million worth of ETH being withdrawn from exchanges in the past week alone, further supporting the trend of declining exchange reserves. Transaction volumes also remain robust, totaling $79.12 billion in the same period, highlighting active participation from both institutional and whale investors [1]. The geographic distribution of transactions is nearly balanced, with 53% from Western regions and 47% from Eastern markets, indicating a broad and global interest in Ethereum [1].

The inverse relationship between declining exchange reserves and rising prices suggests that reduced supply on exchanges contributes to upward price momentum. With fewer tokens available for immediate trading, selling pressure diminishes, allowing prices to continue climbing. This dynamic underscores Ethereum’s strong on-chain fundamentals and growing demand.

Ethereum’s moderate to strong correlation with Bitcoin—estimated at 0.7—also highlights the influence of broader market trends on its price performance [1]. However, its unique on-chain metrics, including long-term holder behavior and whale activity, suggest Ethereum is developing its own independent growth trajectory.

The sustained decline in exchange reserves, coupled with strong holding sentiment and increased transaction volumes, points to a market in transition. As investors continue to prioritize holding over selling, the supply of ETH on exchanges tightens, potentially supporting further price appreciation. Active global participation and whale-driven volume further reinforce the strength of Ethereum’s current market dynamics.

[1] Source: Ethereum Exchange Reserves Decline to 2025 Lows Amid Rising Holding Sentiment and Demand (https://en.coinotag.com/ethereum-exchange-reserves-decline-to-2025-lows-amid-rising-holding-sentiment-and-demand/)