Ethereum Supply Drops as Whales and ETFs Accumulate, Price Holds Steady

• Ethereum exchange supply plunges to 7-year lows, signaling potential supply shock as available ETH dwindles rapidly on trading platforms.
• Spot Ethereum ETFs attracted over $500 million inflows recently, adding institutional demand alongside aggressive whale accumulation of tokens.

Ethereum faces a potential supply shock. The amount of ETH held on cryptocurrency exchanges dropped sharply. This balance reached its lowest point in seven years. Data firm Glassnode confirmed this downward trend. At the same time, large investors and institutions actively bought Ethereum. This combination points to rising demand meeting shrinking available supply.

On June 2nd, Ethereum traded within a narrow band. Its price moved between $2,483 and $2,544. Volatility remained low. Last week, Ethereum and BNB showed the smallest losses among the top ten cryptocurrencies. This relative stability occurred alongside new money entering spot Ethereum ETFs.

Analyst CarlMoon views the falling exchange supply as a positive sign. He stated this situation could push the Ethereum price upward. He suggested ETH might reach a new peak before the end of 2025. CarlMoon commented, «Supply shock incoming for Ethereum. $ETH could easily hit $5,000 this year.«

Data supports the idea of large-scale buying. Ethereum whales , holding between 10,000 and 100,000 ETH, increased their collective balance. On-chain tracker Santiment recorded this activity. These whales raised their holdings from 25.23 million ETH to 26.5 million ETH. This change happened over just two weeks starting May 14th. They acquired 1.27 million ETH. These addresses now control the most Ethereum since January 2024.

This aggressive whale accumulation coincided with institutional inflows. Spot Ethereum ETFs gathered over $500 million during the same two weeks, per SoSoValue figures. Rising demand from these large players, coupled with less ETH readily available on exchanges, creates a tight supply scenario.

Ethereum co-founder Vitalik Buterin aims to increase network capacity . His goal is scaling Ethereum transactions tenfold within one year. Achieving this could boost network usage. Higher usage might further influence the available ETH supply if demand also increases.