Ethereum exchange reserves fell from about 28 million ETH in September 2022 to roughly 17.8 million ETH by September 2025, creating a supply squeeze that helped ETH rebound toward $4,400 despite mid‑tier whale selling of roughly 430k ETH (~$1.8B).
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Exchange reserves dropped ~36% from 28M to 17.8M ETH, tightening circulating supply.
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Mid‑tier whale wallets (1k–10k ETH) offloaded ~430k ETH (~$1.8B) in a two‑week span.
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ETH traded in a resilient $4,200–$4,600 range while reserves declined, indicating demand absorption.
Ethereum exchange reserves fell from 28M to 17.8M ETH, driving a supply squeeze and supporting an ETH price rebound to ~$4,400 — read key takeaways from Coinotag.
What happened to Ethereum exchange reserves?
Ethereum exchange reserves have declined sharply from nearly 28 million ETH in September 2022 to about 17.8 million ETH by September 2025. This sustained withdrawal of coins from centralized exchanges created a material supply squeeze that coincided with ETH’s price recovery toward approximately $4,400.
How did whale activity influence the market during the reserves decline?
Data shows wallets holding between 1,000–10,000 ETH reduced balances by more than 430,000 ETH over late July to late August, roughly $1.8 billion at prevailing prices. Despite this distribution, ETH prices held in the $4,200–$4,600 band, indicating demand absorbed much of the selling pressure.
Frequently Asked Questions
How large was the drop in exchange reserves from 2022 to 2025?
Exchange reserves decreased from nearly 28 million ETH in September 2022 to about 17.8 million ETH by September 2025, a reduction of roughly 10.2 million ETH (about 36%), signaling significant off‑exchange flows.
What did mid‑tier whale wallets do and how much did they sell?
Wallets holding 1,000–10,000 ETH cut balances by more than 430,000 ETH between late July and late August, valued at roughly $1.8 billion during that period, pointing to concentrated profit taking among mid‑tier holders.

Declining Exchange Reserves and Ethereum Price
Between early 2023 and mid‑2024, ETH’s upward trend toward $4,000–$4,800 coincided with continuous withdrawals from centralized exchanges. Periods of sideways reserve movement aligned with short corrections, showing the relationship between liquidity availability and price consolidation.
By 2025 the reserve decline steepened, which correlated with ETH’s broader recovery from prior bear lows. The movement of coins toward staking, long‑term storage, and DeFi reduces sellable inventory on exchanges, supporting higher price floors when demand returns.
Why did ETH hold ground despite whale distribution?
Although mid‑tier holders distributed significant balances, net exchange supply continued to fall as other cohorts accumulated or locked ETH. This divergence—lower exchange reserves plus distributed whale selling—meant markets could absorb sales without a sustained price breakdown.

Key Takeaways
- Exchange reserves fell sharply: From ~28M to ~17.8M ETH, signaling broad off‑exchange accumulation.
- Mid‑tier whales distributed: ~430k ETH (~$1.8B) sold in weeks, showing profit taking among 1k–10k ETH holders.
- Price resilience: ETH trading between $4,200–$4,600 demonstrates demand absorption despite concentrated selling.
Conclusion
The drop in Ethereum exchange reserves from 2022–2025 and concurrent mid‑tier whale distribution created a nuanced market picture: long‑term supply tightened while short‑term selling occurred. This balance has supported ETH’s rebound toward $4,400. For ongoing coverage and data updates, follow Coinotag reporting and reserve metrics.