658,600 ETH Worth $1.24B Leaves Exchanges as Ethereum Supply Tightens and Bullish Sentiment Builds

Ethereum (ETH) reserves are moving in different directions across major cryptocurrency exchanges. 

Gemini and Bitfinex have recorded significant outflows, while Binance’s holdings have remained mostly stable, according to CryptoQuant analyst Amr Taha.

658,600 Fewer ETH on Exchanges

Data shared by Taha shows Gemini’s Ethereum reserve fell to 384,400 ETH on July 24. This marks its lowest level since March 2024.

Notably, the exchange has lost about 188,600 ETH, or 32.9%, since holding 573,000 ETH on April 23.

Meanwhile, Bitfinex has also seen a major decline. Its Ethereum reserve dropped from 2.71 million ETH on May 11 to 2.24 million ETH. That represents a reduction of roughly 470,000 ETH, or 17.3%.

Meanwhile, Binance’s Ethereum reserves have remained largely unchanged at around 3.8 million ETH during the same period.

Together, Gemini and Bitfinex now hold about 658,600 fewer ETH than before. At Ethereum’s current price of around $1,880, the reduction is worth approximately $1.24 billion.

Taha said that falling exchange balances reduce the amount of ETH immediately available for trading. However, reserve movements alone do not show investor intent or predict Ethereum’s future price direction.

Binance Ethereum Funding Rates Reach Six-Month High as Market Sentiment Improves

In a separate market update, Arab Chain highlighted improving sentiment in Ethereum’s derivatives market.

The 30-day simple moving average (SMA) of funding rates for Ethereum perpetual contracts on Binance has risen to approximately 0.00339. This is the highest level in six months, with ETH trading near $1,920.

Funding rates represent the cost traders pay to maintain leveraged positions. A rising positive funding rate usually signals stronger demand for long positions and growing bullish sentiment.

According to Arab Chain, the indicator has reversed after declining for several months. The shift comes as Ethereum has recently recovered in price.

ETH is trading at $1,885, down 2.3% over the past day but remains up 2.56% over the past week. Moreover, the monthly chart shows ETH is up 13%.

Essentially, the move in the derivative markets suggests traders are willing to pay to hold long positions, reflecting expectations that ETH could continue moving higher.

However, Arab Chain noted that funding rates are still below the elevated levels that have historically appeared before major market corrections.

He added that continued increases could signal rising leverage in the market. This may increase the risk of widespread liquidations if Ethereum faces a sharp price decline.