Ethereum reserves dry up as whales buy – Is a supply crunch on the way?

Key Takeaways

Is Ethereum facing a new supply squeeze?

Yes. Exchange Reserves hit 2025 lows near $60.8 billion as whale accumulation grows across spot markets.

What does Ethereum’s market sentiment look like now?

Derivatives data show Open Interest steady near $19 billion and Funding Rates positive, signaling cautious bullish confidence.

Ethereum’s [ETH] next big move might be here before you know it.

Exchange Reserves are drying up and whales are buying. While ETH holds steady, there’s more to it than what meets the eye.

Shrinking supply meets growing demand

Source: CryptoQuant

Exchange Reserves have dropped to new yearly lows, which means fewer coins available for sale.

At the same time, large whale orders have started dominating spot markets. This indicates rising demand pressure during thinning liquidity.

Source: CryptoQuant

When fewer ETH tokens sit on exchanges and big buyers step in, even modest demand spikes can move prices quickly.

The setup is similar to the early stages of Ethereum’s 2020 rally, so another accumulation phase may already be underway.

OI steadies, funding turns positive

After a sharp drop earlier in the week, Ethereum’s Aggregated Open Interest stabilized around $19.1 billion at press time. This meant traders have begun reopening positions after prior liquidations.

Source: Coinalyze

Meanwhile, the Aggregated Funding Rate turned slightly positive at 0.008%, suggesting cautious optimism returning to the Derivatives market.

Together, these metrics show that speculative appetite may be recovering alongside growing Spot accumulation.

ETH holds steady, but momentum is weak

Ethereum showed early signs of stabilization after last week’s sell-off, trading just above $3,900 with mild gains.

The RSI was around 42, which means ETH remained in neutral-to-weak territory, while trading volume also cooled notably. OBV proved muted buying pressure, so accumulation is gradual rather than aggressive.

Source: TradingView

ETH seems to be consolidating between $3,800 and $4,000. This is a key zone that could decide whether the next move is a rebound toward $4,200 or a retest of lower support levels.