Ethereum (ETH) reserves on exchanges have dropped significantly to reach multi-year lows as the price of Ether continues to move sideways. Data shows that in February alone, investors withdrew about 31.6 million ETH from centralized exchanges, leading to the supply crunch. This volume marks the highest monthly level since November 2025.
While the supply crunch shows that Ethereum’s sell-side pressure is dropping, degens are rotating into new low-cap cryptocurrencies. Most are targeting top early-stage crypto projects for big gains in 2026.
Ether reserves hit multi-year lows
Data from CyptoQuant, as shared by market analyst Arab Chain, highlights that over 31.6 million ETH left major exchanges in February, marking the highest level achieved since November last year. Binance alone recorded 14.45 million ETH withdrawn, nearly half of the volume moved from exchanges, while OKX and Kraken came in second and third in ETH outflows.
In tandem, Binance’s Ether reserves have dropped to about 3.46 million ETH, the lowest level since 2020. The drop in Ethereum reserves signals a shift in investor behavior, signaling that investors are moving their assets off exchanges for long-term storage. This suggests Ethereum investors are less inclined to sell in the short term, which can reduce selling pressure.
The supply crunch may result in a bullish expansion for ETH as selling pressure declines. As a result, Ethereum may edge higher into the $2,000s region. On February 4, Ethereum traded at $2,075, having climbed by 6.4% on the day. The rally signals a resurgence in momentum across Ether as investors regain confidence in the asset.
