Ethereum reserves on major exchanges have dropped sharply, with a combined outflow of 658,600 ETH worth around $1.24 billion, signaling a tightening supply despite varied movements among platforms.
Significant Withdrawals from Gemini and Bitfinex
Gemini's Ethereum holdings plunged to 384,400 ETH on July 24, marking the lowest level since March 2024. This represents a decline of roughly 188,600 ETH, or 32.9%, from 573,000 ETH held on April 23. Bitfinex also recorded a major decline, with its ETH reserves falling from 2.71 million in mid-May to 2.24 million by late July, a 17.3% drop equivalent to about 470,000 ETH. In contrast, Binance’s ETH reserves have remained stable at approximately 3.8 million ETH.
The combined reduction in Gemini and Bitfinex reserves shows a contraction in the amount of Ethereum immediately available for trading on exchanges. CryptoQuant analyst Amr Taha highlighted that while these reserve changes reduce short-term liquidity, they don't directly reveal investor intentions or predict price moves.
Derivatives Market Points to Rising Bullish Sentiment
Meanwhile, Ethereum’s derivatives market on Binance shows growing optimism. The 30-day simple moving average of funding rates for ETH perpetual contracts has climbed to about 0.00339, the highest in six months. This uptick in funding rates indicates traders are paying more to hold leveraged long positions, suggesting confidence in further price increases.
Currently, ETH trades near $1,885, down 2.3% in the past day but up 2.56% over the week and 13% for the month. Arab Chain notes the reversal in funding rates follows a recent price recovery, but warns that despite the positive momentum, funding rates remain below prior peaks seen before significant corrections. A continued rise in funding rates could signal increased use, potentially raising the risk of liquidations if prices drop sharply.
This content is informational and not financial advice.
