Ethereum is disappearing from exchanges – Is this a sign of caution?
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Journalist Posted: September 14, 2025 Key Takeaways Ethereum investors are pulling tokens off exchanges at a rapid pace. Meanwhile, derivatives data indicates bullishness. But with low weekend volumes and choppy momentum, caution is warranted. Ethereum [ETH] investors are not in the mood to sell. Exchange reserves have dropped more than 20% since May, showing ETH being moved into long-term wallets and DeFi protocols. At the same time, OI is picking up again. Still, with weekend volumes running low and price action remaining choppy, the setup calls for caution, especially for those leaning on high leverage. ETH reserves plunge Ethereum’s exchange reserves have seen a change since May. For much of the year, balances stayed steady, but things changed sharply after ETH dipped below $1,500. Source: Cryptoquant According to CryptoQuant, reserves dropped from 20.6 million to just 17.1 million in less than four months; a 20% slide, with Binance alone holding over 4.5 million ETH. This usually means investors are moving coins off exchanges for long-term storage or yield strategies in DeFi. In other words, fewer tokens sitting on exchanges could indicate that Ethereum has more upside ahead. OI picks up, but risks remain Ethereum’s derivatives market is flashing signals too. Source: Cryptoquant OI across all exchanges has been climbing steadily since the 2nd of September, so traders are once again ramping up activity. While rising OI can indicate confidence, it also comes with risk; especially in thin weekend trading conditions where volatility tends to be choppier. Source: Coinalyze At the same time, aggregated Funding Rates remained positive at around 0.0101, showing that traders were leaning more towards longs. This is optimistic, but it also means overleveraged long positions could get caught off guard if momentum shifts suddenly. Until liquidity improves and price action smooths out, high-leverage positions are particularly vulnerable…
Filed under: News - @ September 14, 2025 5:16 pm