Ethereum Exchange Supply, the amount of Ethereum held on centralized exchanges, has hit its lowest level in 10 years indicating that long-term holders and institutional investors are increasingly confident in the asset. Analytics firm Santiment reveals that as of May 19, 2025, exchanges hold less than 4.9% of total ETH supply which stands as the lowest percentage since Ethereum’s inception. The combination of declining Ethereum exchange supply and increased whale activity has intensified speculation about its future price trajectory. With ETH currently trading around $2,535, market watchers are asking: Is a $3,000 price point within reach?
Over 15 Million ETH Withdrawn from Exchanges in 5 Years
The movement of withdrawing Ethereum from centralized platforms is happening at a much faster rate. Santiment reports that more than 15.3 million ETH have been withdrawn from the Ethereum exchange supply during the past five years. There is a growing movement toward individuals maintaining their own assets and holding them over extended periods. According to CryptoRank.io data from the past month more than 1 million ETH withdrawals took place which shows users now see Ethereum as a store of value instead of just a trading asset. These transactions lower immediate selling pressure which frequently leads to major price rallies.
Ethereum Whales Accumulate Over 450,000 ETH Since April
The increase in whale activity correlates with diminishing reserve levels on exchanges. ETH whales which maintain balances exceeding 10,000 ETH have collectively increased their holdings by more than 450,000 ETH since late April. The total ETH held by these addresses reached 40.75 million on May 10 which marks the highest amount since March. The steady build-up of Ethereum holdings demonstrates faith in the platform’s foundational strengths while important network enhancements are implemented and institutional involvement expands.
Institutional Demand for ETH Strengthens
Ethereum has gained traction among institutional investors. According to SoSoValue data U.S.-based Ethereum ETFs received $30 million in net inflows during the last month. The transition stops a long phase of outflows while indicating restored investor enthusiasm. BlackRock’s Ethereum assets now exceed $2.9 billion in total assets under management (AUM), demonstrating Ethereum’s growing status as a fundamental component of professional investment portfolios. Institutional entities find Ethereum appealing because of its regulatory transparency and staking features.
Ethereum’s Upgrades Fuel Layer-2 Ecosystem Growth
The Pectra upgrade which launched on May 7 improved Ethereum’s data processing capabilities and provided benefits to Layer-2 solutions. L2Beat reported that Layer-2 activity experienced a growth of more than 20% during the previous month. Coinbase’s Layer-2 chain Base topped the transaction count with 259 million recorded in 30 days. The increased scalability and transaction volume demonstrate Ethereum’s expanding usefulness while solidifying its role as the foundation for decentralized finance (DeFi) and Web3 ecosystems.
Potential SEC Decision on ETH Staking ETFs Could Be a Game Changer
Investors should watch for the SEC’s decision regarding Ethereum ETF staking which is expected by June 1. Should approval be granted institutions will have the opportunity to access on-chain yield through ETFs which will enhance Ethereum’s value proposition. According to BlackRock and similar firms, ETH ETFs would achieve greater completeness and market competitiveness with staking support. Staking inclusion will draw income-focused investors which will reinforce Ethereum’s standing in mainstream finance.
ETH Price Outlook: Is $3,000 Next?
Ethereum experienced a significant recovery in Q2 as its price reached $2,535, which represents a 57% increase over 30 days after a previous 45% decline in Q1. The combination of record-low Ethereum exchange supply together with increasing whale accumulation and renewed institutional flows creates ideal conditions for upward price movement potential. Market experts such as Arthur Hayes believe that Ethereum will surpass altcoins like Solana during this cycle thanks to its dependable network security features along with its active developer ecosystem and growing institutional interest.
Ethereum fundamentals indicate a potentially strong upward price movement due to decreasing exchange reserves, whale purchases, and institutional returns. Market observers now focus on regulatory decisions and macro trends that might serve as catalysts for Ethereum to reach the $3,000 mark.
