Ether exchange supply on Binance reaches 6-year low

Ether (ETH) balances held on exchanges fell to a multi-year low, with more than 31 million ETH leaving central exchanges in February, marking the largest monthly outflow since November.

While the price of ETH remains around $2,000, the results data shows a split between small buyers and large sellers, raising the question of how the price might react if demand is similar on both retail and whale wallets.

Ether exchange expects compression of signal supply.

Crypto analyst Arab China left more than 31.6 million ETH on major exchanges in February, the highest monthly flow since November. Binance leads the way with an outflow of 14.45 million ETH, almost half of the total. OKX followed with 3.83 million ETH, and Kraken recorded 1.04 million ETH.

Continuous withdrawals reduce the pool of coins readily available for space trading activity. Coins that move to private wallets or holding platforms are more liquid in a shorter period of time. As a result, thin currency balances increase price volatility when market activity increases.

Likewise, data from CryptoQuant shows that Binance's Ether reserves have dropped to 3.46 million ETH, the lowest level since 2020. In previous cycles, reserves reached more than five million ETH before entering a downward trend seen at lower highs. The final reading extends that failure.

With ETH trading below $2,000, the exchange's tight supply positions have focused attention on futures demand. If buying pressure expands as inventories continue to fall, the volume on the order books could tighten further around $2,000.

Related: Ether Price Rejects $2K Again: How Low Can ETH Go in March?

The market is divided between retailers and whalers.

Hyblock data highlighted the disparity between business sizes. The cumulative volume delta (CVD) that tracks net buying and selling amounts to $95 million for small businesses ($0 to $10,000). That shows consistent retail-led buying pressure.

In contrast, the $10,000–$100,000 business bracket records about -$162 million in CVD, while the $100,000-plus category has around -$357 million. As can be seen, large participants tended to net sales over the same period.

The bid-ask ratio turned slightly positive, rising to around 0.2 before settling at 0.03, indicating slightly stronger buying interest in recent sessions. The move follows several negative readings and suggests short-term stability rather than broad confidence.

Total open interest is close to $9.41 billion, up from nearly $10 billion at the end of February. As the price converged from $1,900 to $2,000, it indicated a decrease in buying volume.

If retail accumulation continues and large-scale selling slows, a bullish position could line up further. If so, the reduced supply of the currency could extend the price movement after ETH consolidates above $2,000-$2,150.

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