TLDR:
- Billions of dollars in Ethereum have left exchanges in recent months, creating the first recorded supply squeeze on trading platforms.
- Ethereum’s exchange flux balance turned negative for the first time, signaling demand from both institutions and retail buyers.
- Price of ETH trades at $4,388, showing a 9.45% weekly gain after reclaiming the critical $4,250 support level.
- Analysts point to $4,500 and $4,750 as next resistance, with downside risk to $4,000 if support gives way.
Ethereum is entering a rare phase that has drawn fresh attention across crypto markets. Billions of dollars in ETH are leaving exchanges, creating a squeeze on supply. Traders and analysts are closely watching whether this shift fuels the next leg higher.Â
Price has already pushed back above a critical support level, but market sentiment remains mixed. The next move could define how Ethereum performs against Bitcoin and the broader altcoin sector.
Ethereum Supply Squeeze Signals Market Shift
On-chain trackers show a historic turn in exchange flows. Alphractal noted that, for the first time, exchanges are unable to absorb the pace of withdrawals.Â
The exchange flux balance, which measures cumulative netflows, has now turned negative. This points to rising demand from both retail buyers and larger players.
High values in this metric normally suggest that exchanges build reserves through inflows. Low or negative values, however, reflect the opposite.Â
ETH Leaves Exchanges, Creating a Historic Supply Squeeze
For the first time in history, the amount of ETH leaving exchanges has surpassed their ability to accumulate it.
Whether you look at Netflow in ETH or in USD value, the data shows that in recent months, billions of… pic.twitter.com/OftXRsYxRF
— Alphractal (@Alphractal) October 1, 2025
With billions leaving trading platforms in recent months, ETH supply available to sell is shrinking. The shift is being described as one of the strongest demand setups Ethereum has faced.
This pattern is fueling speculation about near-term market direction. While price action alone does not confirm trends, the pressure on supply is clear.
 Analysts believe these conditions could create a tighter market if momentum continues.
The market is watching closely as institutional interest grows. Exchange data reflects that ETH accumulation is now more challenging than at any point before. Such demand dynamics set the stage for volatility around major resistance levels.
Ethereum Price Holds $4,250 Support
Traders have kept a close eye on Ethereum’s recent performance against both the dollar and Bitcoin.Â
Per data from CoinGecko, ETH trades at $4,388.63, up 4.77 percent in 24 hours. Weekly gains now stand at 9.45 percent as liquidity returns.
Market analyst Ted noted that Ethereum reclaimed $4,250, a level now acting as support. He pointed to $4,500 and $4,750 as the next upside targets before an attempt at new highs. Should the level break down again, he cautioned, price could revisit $4,000.
Daan Crypto Trades added context from the ETH/BTC pair. He observed that the pair has stalled after a 150 percent run from its lows. For the past 40 days, Ethereum has hovered in a narrow range against Bitcoin, reflecting weaker momentum for altcoins.
The analyst stressed that a reclaim above 0.041 BTC or a retest near 0.032 BTC would be key. These levels will likely decide whether altcoins regain strength or remain under pressure. Until then, Bitcoin dominance may continue to weigh on the broader market.
The post Ethereum Supply Squeeze Deepens as ETH Price Holds Above $4,250 appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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