Ethereum Flashes 3 On-Chain Signals That Buyers Are Still Around

Ethereum (ETH) is flashing 3 bullish on-chain signals as exchange supply shrinks, priority fees climb, and Binance stablecoin reserves rebuild.

The signals come after ETH rallied from around $1,900 to $2,800 before pulling back. The asset now trades near $2,678, up about 8% over the past week, BeInCrypto Markets data shows.

Ethereum Keeps Draining Off Exchange Order Books

Santiment data shows just 3.49% of ETH supply now sits on tracked exchanges. Another 1.16% of total supply has moved off these platforms since June 1.

The firm added that exchange balances had already sunk to levels last seen in Ethereum's first years this summer. The drop extends a slide in exchange reserves since January. Fewer coins on exchanges leave less ETH ready to sell.

"But it reduces the pool of ETH readily available to hit the market during the next wave of selling," the firm added.

Staking and Decentralized Finance (DeFi) help explain where the coins are going. Santiment estimates roughly 35% of ETH is staked, while Ethereum holds about $53 billion in DeFi value.

Corporate treasuries also keep coins off exchanges. BitMine holds 5.98 million, with 85% of its holdings staked.

"If demand strengthens while available exchange supply stays this scarce, buyers have fewer immediately available coins to compete for," the team added.