For the first time, central exchanges are seeing more ETH leave their platforms than they are able to replenish — a signal that demand is outpacing supply on an unprecedented scale.
Alphractal’s analysis shows billions of dollars worth of ETH have been withdrawn from exchanges in recent months, leaving trading venues with a shrinking pool of reserves.
The firm pointed to its Exchange Flow Balance indicator, which tracks the net movement of tokens across exchanges, noting that the gauge flipped negative for the first time since Ethereum’s inception.
A negative reading suggests that buyers — both institutional and retail — are pulling ETH into self-custody or other holding structures faster than exchanges can absorb new deposits. Alphractal described this as the “strongest market-making interest in Ethereum’s history,” hinting at growing conviction among investors.
While the long-term implications may be bullish, the firm also warned that such extreme conditions could lead to heightened volatility in the near term. With supply tightening and demand accelerating, Ethereum’s market may be on the verge of powerful price swings.