Ethereum reserves on exchanges hit a record low: Whales accelerate purchases
Ethereum recently experienced a busy trading week, with the price sharply recovering from important support at $3,730 and holding above the $3,800 mark. On-chain data shows that the amount of ETH on exchanges has decreased to a 9-year low, while whale wallets continue to actively accumulate, creating conditions for a new rally that exceeds the psychological barrier of $4,000.
Whales activate purchases — Ether Machine buys another 15,000 ETH
In honor of Ethereum's 10th anniversary, Ether Machine — a company specializing in mining and holding ETH — announced that its subsidiary The Ether Reserve LLC recently purchased another approximately 15,000 ETH at an average price of $3,809.9, totaling around $56 million.
With this deal, the amount of ETH that Ether Machine holds long-term has increased to 334,757 ETH. The company disclosed that it still has the capacity to buy additional ETH with available capital of $407 million.
Demand from institutions continues to grow, ETF funds support positive cash flow
According to SoSoValue data, Ethereum ETF funds in the U.S. continue to record positive cash flows on Wednesday, with a volume of $5.79 million. Since early July, these funds have attracted $5.14 billion — the highest level since their launch.
This indicates that demand from institutional investors remains stable, although it has slightly decreased compared to July.
ETH reserves on exchanges reached a 9-year low
Data from CryptoQuant shows that the amount of ETH on exchanges currently stands at only 18.7 million ETH, continuing to sharply decline since early July 2024. This is the lowest level since 2016, reflecting reduced selling pressure and limited supply for trading.
Technical analysis: $3,730 remains an important support
Main support: $3,730
Psychological resistance: $4,000
Target growth: If ETH closes the daily candle above $4,000, the rally could expand to the $4,488 zone — the high from December 9, 2021.
Bearish scenario: If the $3,730 mark is lost, ETH risks falling below $3,500.
Currently, ETH is trading around $3,800, maintaining a recovery structure after bouncing from support.
Conclusion
The decrease in ETH reserves on exchanges to the lowest level in nearly a decade, combined with institutional cash flows and active whale purchases, creates a solid foundation for a new Ethereum breakout. However, investors should closely monitor price reactions around the $4,000 mark — an important psychological barrier that defines the short-term trend.