Ethereum News Today: Ethereum Exchange Reserves Hit 18.39M ETH, Lowest Since October 2022

Ethereum reserves on centralized exchanges have fallen to 18.39 million ETH as of August 17, 2025, reaching the lowest level since October 2022 according to multiple sources [1][2]. This decline reflects a growing trend of asset outflows from centralized platforms, with investors increasingly favoring long-term holding strategies and self-custody solutions [2]. The shift indicates a broader movement toward decentralization, with significant withdrawals being observed from both smart money and institutional investors [2].

The drop in exchange reserves is not isolated to Ethereum but is mirrored in Bitcoin, which now holds only 2.52 million BTC on exchanges, signaling a wider reduction in market liquidity across major crypto platforms [1]. Analysts have noted that these trends could lead to increased price volatility and a potential supply squeeze as the available supply on exchanges declines [4]. With Ethereum's price currently hovering near $4,450, the market remains resilient despite recent corrections [5].

Institutional interest in Ethereum has also been on the rise. A U.S. political figure reportedly purchased 1,911 ETH worth $8.6 million, while a major mining firm, Bitmine Immersion Technologies, acquired over $470 million in ETH within a short period [4]. These actions underscore a growing perception of Ethereum as a long-term investment rather than a speculative asset. Additionally, an unidentified institution withdrew nearly $412 million worth of Ethereum from Kraken, indicating continued accumulation by large market participants [4].

The sustained accumulation by institutional players is further supported by the Spot Taker CVD metric, which has shown consistent buyer dominance from June to August, alongside a rise in Open Interest to nearly $29 billion [4]. This suggests fresh capital is entering the Ethereum market, driven primarily by institutional actors.

While Ethereum's short-term momentum has cooled, key technical indicators remain positive. The RSI is near 67, just below overbought territory, and the MACD continues to show upward alignment [4]. The recent dip to $4,428 has not triggered a reversal, and as long as the key indicators remain in favor, the price structure appears intact. Analysts suggest that any further dips could be absorbed by sustained institutional buying and ongoing spot demand [4].

The decline in Ethereum exchange reserves aligns with broader trends seen in altcoins such as FLOKI, which also recorded a yearly low in exchange reserves by mid-August [3]. This suggests a general shift in investor behavior across the crypto market, with traders moving away from centralized exchanges and toward decentralized platforms or long-term storage solutions [3].

Source:

[1] Ethereum News Today: Ethereum CEX Reserves Fall 18.39M ETH, Bitcoin Drops 2.52M BTC

(https://www.ainvest.com/news/ethereum-news-today-ethereum-cex-reserves-fall-18-39m-eth-bitcoin-drops-2-52m-btc-2508/)

[2] Ethereum CEX Reserves Hit 18.39M ETH, Lowest Since October 2022

(https://www.ainvest.com/news/ethereum-news-today-ethereum-cex-reserves-hit-18-39meth-lowest-october-2022-2508/)

[3] 3 Altcoins See Declining Exchange Reserves in the Second Week of August

(https://www.xt.com/en/blog/post/3-altcoins-see-declining-exchange-reserves-in-the-second-week-of-august)

[4] How Ethereum's Triple Bullish Setup Could Drive ETH Prices

(https://ambcrypto.com/how-ethereums-triple-bullish-setup-could-drive-eth-prices/)

[5] Ethereum Price Rejects at ATH: ETF Flows Reverse, SBET Dips

(https://99bitcoins.com/news/altcoins/ethereum-price-rejects-at-ath-as-etf-flows-reverse-and-sbet-drops/)