Ethereum’s exchange supply has plummeted, with only 6.06 million ETH now held on trading platforms, a stark contrast to the 22.9 million recorded at the network’s peak in June 2020. This represents a 73% reduction in readily available supply, according to Santiment’s estimates.
Reduced Liquidity Fuels Potential Price Swings
The diminished amount of ETH readily accessible on exchanges signifies less supply available for immediate market sales and panic sell-offs. This trend is attributed to ETH being moved into staking, wrapped in exchange-traded funds (ETFs), utilized in treasury strategies, and held in long-term custody.
Furthermore, validators are locking up the cryptocurrency to bolster network security. Analytics firm Santiment points out that significant demand surges are not a prerequisite for substantial price movements. As liquid supply contracts, even modest buying pressure can exert a more pronounced impact on price.
Key Price Levels and Market Uncertainty
Crypto analyst Crypto Patel has identified Ethereum at a “structural inflection point,” pinpointing the $2,567-$2,666 zone. A rejection from this range could see ETH fall to $2,150, $2,000, or even $1,800. Conversely, a confirmed close above $2,666 on a higher timeframe could pave the way for a climb towards $3,100 and $4,000.
Meanwhile, Daan Crypto Trades noted that the asset has experienced significant volatility ahead of the CLARITY Act vote and Federal Open Market Committee (FOMC) meetings. Traders have been adjusting their positions in anticipation of the uncertainty, leading to heightened price swings that have impacted both bullish and bearish positions. The analyst expressed limited optimism regarding the upcoming vote, suggesting that a failure or withdrawal could lead to further downside and choppy trading leading up to the FOMC announcement. Post-FOMC, price action is expected to stabilize.
BitMine’s Strategic Accumulation
One notable entity, BitMine, has been consistently increasing its Ethereum holdings. The company now possesses 5,956,378 ETH after acquiring an additional 27,180 tokens in the past week.
This accumulation brings BitMine’s stake to 4.9% of Ethereum’s total supply of 122 million ETH, inching closer to its “Alchemy of 5%” strategy target. The company has been purchasing ETH weekly since June 30, 2025, and has now reached 98% of its goal. A significant portion of its treasury is staked, with 5,067,309 ETH, approximately 85% of its holdings, locked within its MAVAN validator network.
Tom Lee projects annualized staking revenue to reach $334 million, potentially rising to $392 million if the entire ETH treasury were staked. Bitmine’s total crypto, cash, and speculative holdings are valued at $15.8 billion.
Ethereum ETFs See Strong Inflows
In separate developments, Ethereum ETFs recorded nearly $197 million in net inflows last week. The final trading day saw $216.4 million flow into these funds, effectively counteracting earlier outflows. This positive momentum has extended into the current week, with Monday alone bringing in an additional $121 million in net inflows, pushing the monthly total towards $450 million.
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