Ethereum Exchange Reserves Hit 2016 Lows – Bitmine Adds $11.22M ETH
Ethereum exchange reserves dropped to their lowest levels since 2016, raising hopes of a supply-driven recovery despite the prevailing market weakness. According to CryptoQuant Community insights, the total ETH exchange reserves declined to roughly 14.5 million ETH on November 2, marking a 58.6% reduction from the 2020 peak of 35 million ETH.
Notably, Binance registered a similar drop, with reserves falling 37.1% from their 2021 peak, reaching 3.08 million ETH, revisiting levels last seen in late 2020.
Institutional Accumulation and Bullish Positioning
Despite the token’s recent struggles, institutional accumulation has strengthened. Tom Lee’s Bitmine expanded its ETH holdings, purchasing another 5,000 ETH valued at roughly $11.22 million, bringing their total acquisition to 6.065 million ETH, worth nearly $13.7 billion.
This increased institutional control, now at around 4.96% of Ethereum’s total supply, suggests a significant exposure to the asset.
Bullish Bets Return as Funding Turns Positive
Traders on the derivatives market showed renewed optimism. ETH’s OI-Weighted Funding Rate recovered to 0.0101%, returning to positive territory and implying fresh demand for bullish leveraged positions.
Binance’s top trader Long/Short Ratio revealed a strong preference for long positions, with 70.2% representing long accounts compared to 29.8% holding short positions.
Ethereum Defends $2,243 as Rebound Hopes Grow
Ethereum’s defense of the $2,243 support level validated hopes of a price rebound. Following the defense, Ethereum’s market value sat at $2,254, positioning itself around the middle of its descending channel.
The RSI indicator stood at 33.23, approaching oversold conditions, and the Money Flow Index (MFI) reached 37.18, highlighting relatively weak capital inflows despite the successful defense.
Overall, declining exchange reserves, Bitmine accumulation, and bullish derivatives positioning favored the possibility of a rebound. Continued buying above $2,243 could strengthen this outlook, while reclaiming the $2,385 resistance would provide stronger confirmation of a sustained recovery.
Final Summary:
- Ethereum exchange reserves hit decade-old lows as Bitmine continued accumulating ETH.
- ETH’s defense of $2,243 support could pave the way for recovery toward $2,385.