Ethereum Surges Over 55% in One Month, Even as Fees Hit Near 5-Year Low

Key Points:

• Ethereum exchange reserves dropped to a 10-year low.
• Whales have accumulated over 850,000 ETH since early April.
• BlackRock’s ETH holdings exceeded $3 billion.

Ethereum (ETH) has rallied over 55% across the past month, according to CoinMarketCap, even as network fees hit a five-year low. Despite weaker short-term fundamentals, the market sentiment stays bullish. This is driven by sustained whale accumulation, a 10-year low in exchange supply, and positive ETF inflows.

Ethereum Supply on Exchanges Drops to 10-Year Low

As of May 19, according to Santiment, only 4.9% of ETH is held on centralized exchanges. a 10-year low, signaling reduced sell pressure and rising long-term investor confidence. Over the past five years, approximately 15.3 million ETH have been withdrawn from exchanges, per a Santiment study:

📉 Ethereum has under 4.9% of its supply on exchanges for the first time in its 10+ year history. And Bitcoin's supply on exchanges is down to just 7.1% for the first time since November, 2018.

🗓️ Over the past 5 years, there is:

👉 1.7M less Bitcoin on exchanges
👉 15.3M less… pic.twitter.com/kKn9s1m2mC

— Santiment (@santimentfeed) May 19, 2025

CryptoRank.io reported that more than 1 million ETH were withdrawn from centralized exchanges over the past month, indicating strong accumulation.

Ethereum Supply on Exchanges Drops as Price Climbs

Over the past month, more than 1 million $ETH have been withdrawn from centralized exchanges, which accounts for approximately 5.5% of the total #ETH held on these platforms. This trend suggests that users are increasingly… pic.twitter.com/lnqW7xOCGR

— CryptoRank.io (@CryptoRank_io) May 17, 2025

Whales Accumulate 450,000+ ETH Since Late April

Since early April, Ethereum whales holding above 10K ETH have added over 850,000 ETH, according to Crypto Quant. Whales have strategically capitalized on market dips, accumulating Ethereum during periods of price weakness to strengthen their long-term positions.

Institutional Interest

According to SoSoValue, U.S. spot Ethereum ETFs recorded over $40 million in net inflows over the past month, marking a reversal from previous outflows. Additionally, BlackRock’s Ethereum assets under management exceeded $3 billion, reflecting sustained institutional accumulation.

Derivatives Data

At the time of reporting, ETH liquidations accounted for $26.7 million according to CoinGlass.

Breakdown:

• Shorts: $16.49 million
• Longs: $10.24 million

The net effect shows that more short positions were liquidated than longs, signaling that a swift upward price movement likely caught bearish traders off guard. This imbalance points to a potential short squeeze, reinforcing bullish momentum in the market.

Arthur Hayes, BitMEX co-founder, said ETH could outperform in the next bull run due to its strong security, active developers, and large user base.