Ethereum supply dries up on exchanges – How this points to a breakout

Key Takeaways

Why are Ethereum reserves on Binance falling?

Over 820,000 ETH have left Binance since August, pushing reserves to their lowest level since May.

What could this mean for ETH?

ETH could rally further if demand strengthens and exchange outflows continue.

Ethereum [ETH] is gaining as companies add to their holdings, and Binance’s ETH reserves fall to their lowest level since May.

With supply tightening across exchanges and corporate holdings, is ETH ready for the next big leap?

Binance ETH reserves at a 5-month low

Ethereum’s Exchange Reserves on Binance have seen a drop since late August, falling from 4.69 million ETH to just 3.87 million ETH by the 23rd of October; a decline of nearly 820,000 ETH.

Source: CryptoQuant

This is the lowest level since May, when ETH prices rallied from around $3,800 to $4,800 within weeks. The outflow means that more investors are moving their holdings off exchanges, implying confidence.

With fewer tokens available for trading, the market may be ready for a supply squeeze. If demand continues to build, it can push ETH up, too!

A possible turning point?

Adding to the bullish setup, Ethereum treasury firms appear to be stabilizing after months of decline.

Source: X

According to analyst TedPillows, corporate ETH holdings have been falling steadily since August 2025. This could be a key factor behind the token’s muted performance.

Recent data, however, proved this downtrend may be bottoming out.

If corporate buying continues, it could repeat phases where institutional confidence acted as a catalyst for ETH to surge.

ETH attempts recovery

At press time, Ethereum traded near $3,986, with a modest 0.82% daily gain.

Source: TradingView

The RSI was at 46.9, neither overbought nor oversold. Meanwhile, the OBV held around 11.92 million, with steady but limited buying pressure.

Trading activity remained moderate, with no major spikes in volume.

Price action over the past week formed a gradual upward curve following earlier sell-offs, showing an early-stage recovery attempt.

However, sustained momentum above the $4,000 resistance zone is needed to confirm a broader bullish reversal.