Ethereum News Today: Ethereum Investors Shift to Long-Term Staking as Exchange Flows Turn Historic

Ethereum (ETH) is experiencing significant on-chain activity that signals a shift in investor behavior and potential for long-term growth. For the first time in its history, Ether’s exchange flux metric has turned negative, indicating aggressive accumulation by investors. This metric, developed by data analytics platform Alphractal, tracks cumulative net flows of ETH across exchanges. A negative value suggests more tokens are leaving exchanges than entering, which is typically associated with long-term holding behavior and reduced selling pressure. Joao Wedson, founder of Alphractal, noted that billions of dollars in ETH are currently flowing out of exchanges, describing it as a "historic milestone" that could mark a major shift in ETH investor behavior [1].

As of late August 2025, Ether’s exchange balances were at their lowest levels in nine years, with only 15.72 million ETH held on exchanges, a level last seen in July 2016 according to data from Glassnode. The reduction in available supply on exchanges could lead to a liquidity shortage, further supporting long-term price appreciation. Exchange outflows have surged since mid-July, a trend that analysts are viewing as bullish. The current environment is also marked by significant on-chain activity from early investors. One notable example is an Ethereum investor who originally acquired 1 million ETH during the 2014 initial coin offering (ICO) for $310,000. Recently, this investor moved 150,000 ETH—worth $646 million—into a staking address, marking one of the largest staking deposits in recent memory [2]. This action reflects broader trends of older investors participating in Ethereum’s proof-of-stake ecosystem as yields stabilize and the network matures.

Price action also suggests Ethereum is building momentum for a potential breakout. The ETH price must reclaim the $4,500 level to confirm a recovery, as this level has acted as a key resistance since mid-August. Crypto traders and analysts, including Jelle and Donald Dean, have identified a bullish pennant formation in ETH/USD price charts. A decisive close above $4,500 would validate the breakout and could trigger a move toward price discovery. Based on Fibonacci retracement levels, Dean has outlined potential price targets at $5,766, $6,658, and $9,547. These projections are based on the assumption that the current consolidation pattern holds and that buying pressure remains strong [1].

Meanwhile, Ethereum’s staking layer has grown to over 33 million ETH, as more investors lock their tokens to earn yields. This increase in staked supply has reinforced Ethereum’s transition to a more decentralized and sustainable model. The recent staking activity from the 2014 ICO investor highlights the long-term commitment of some of the earliest adopters, further reinforcing market confidence. Traders are closely watching such movements, as they represent the reactivation of long-dormant supply that could influence market sentiment and liquidity.

In the broader crypto market, Ethereum’s performance has outpaced many other assets. While ether-based ETFs have experienced outflows over recent days, Ethereum itself continues to attract attention due to its strong on-chain fundamentals and bullish technical indicators. Analysts view the current accumulation and staking activity as signals that Ethereum is well-positioned for a sustained upward trend. The combination of reduced exchange liquidity, increased staking participation, and strong price action suggests that ETH could continue to outperform in the coming months [1].

Source: [1] ETH exchange 'flux' turns negative for the first time (https://cointelegraph.com/news/ethereum-bull-run-eth-exchange-flux-turns-negative-for-the-first-time) [2] Ethereum ICO Whale Stakes $646M ETH After Three Years ... (https://www.coindesk.com/markets/2025/09/05/ethereum-ico-whale-stakes-usd600m-after-three-years-dormant)