Ethereum Remains at $4,000 Even as Institutions Invest
- Ethereum's exchange supply fell to 16.3M ETH in Sept 2025, a 45% drop from 2023 peaks, signaling institutional dominance and long-term accumulation. - Corporate treasuries and ETFs acquired 10% of total supply, with BlackRock's ETHA ETF holding $15.93B and BitMine acquiring 2.4M ETH (2% of supply). - Despite $11.3B in monthly withdrawals, Ethereum remains range-bound at $4,000 as LTH selling pressure offsets institutional buying, creating conflicting market dynamics. - ETFs showed mixed flows, with Fidel
Ethereum’s presence on exchanges has dropped to its lowest point in almost ten years, indicating a move toward long-term holding and a growing influence from institutional investors. By September 2025, the volume of
This drop in exchange liquidity points to a broader redistribution of Ethereum assets. Since April 2025, over 68 organizations have accumulated 5.26 million ETH, with the majority being staked for returns rather than kept on exchanges title1 [ 1 ]. This trend eases immediate selling pressure and makes the market less liquid. CryptoQuant data reveals that the 30-day average of Ethereum’s net exchange flows is at its lowest since late 2022, with significant outflows often signaling a shift to self-custody or DeFi platforms title3 [ 3 ]. Glassnode highlights a single-day net withdrawal of 2.18 million ETH, the fifth-largest in ten years, emphasizing the magnitude of this movement title2 [ 2 ].
Institutional involvement has played a major role. BitMine, under Tom Lee’s leadership, now possesses 2.4 million ETH (2% of the total supply), while BlackRock’s ETHA ETF leads the pack with $15.93 billion in managed assets title1 [ 1 ]. However, ETF performance has varied, with
Even with strong accumulation, Ethereum’s price has stayed within a narrow band near $4,000, held back by opposing market pressures. While institutional purchases have tightened supply, Glassnode’s data on long-term holder (LTH) sales shows continued selling activity. The Liveliness indicator, which tracks LTH behavior, has climbed, pointing to more selling than holding among these investors title2 [ 2 ]. As a result, Ethereum’s price has remained between $4,000 and $4,500, with key support at $4,074 and resistance at $4,222 title2 [ 2 ]. Analyst Rachael Lucas described the current state as Ethereum undergoing a “Wall Street transformation,” noting that institutional accumulation and price trends do not always move together title3 [ 3 ].
The effects of shrinking exchange liquidity are considerable. With fewer ETH available for trading, short-term price swings may lessen, and large trades could encounter greater obstacles. The growing influence of institutions is also changing the market landscape, as these players focus on staking and holding for the long term instead of frequent trading. If demand continues to surpass supply, upward price momentum could strengthen, though regulatory and broader economic factors will still play a crucial role. Tom Lee’s prediction of Ethereum reaching $10,000–$15,000 by year-end title1 [ 1 ] depends on ongoing institutional accumulation and a slowdown in LTH selling.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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