Ethereum’s price recovered by more than 50% in May, as on-chain data revealed notable shifts in investor behavior following the Pectra upgrade. Investors significantly increased exchange withdrawals, lowered reserves, and accumulated ETH at unprecedented levels, prompting analysts to forecast higher price levels in the near future.
According to data provided by Cryptorank, the amount of Ethereum held on centralized exchanges (CEXs) has declined from over 18 million to approximately 17 million within the span of a month. This drop of over 1 million ETH signifies a 5.5% reduction in the overall supply stored on exchanges.
Cryptorank reported that users withdrew over 1 million ETH from centralized exchanges in the past month—approximately 5.5% of the total Ethereum held on those platforms. This trend suggests that users are increasingly choosing to accumulate Ethereum rather than trade it actively.
Binance Tops Ethereum Withdrawal Rankings
CryptoQuant data shows that users have withdrawn over 300,000 ETH from Binance in the past month alone. Since January, the total amount of ETH removed from the exchange has surpassed 800,000.
Ethereum withdrawals increased as its price dropped below $1,400 in early April and intensified when the price rebounded above $2,400 in May. This inverse relationship between shrinking exchange reserves and rising prices supports a supply-demand dynamic that currently favors bullish market sentiment.
According to CryptoQuant, whale wallets accumulated approximately 325,000 ETH in a single day on May 12. This marked the highest single-day acquisition ever documented by large accumulation addresses.
When whales accumulate ETH on this scale, they typically withdraw it from exchanges and transfer it into cold wallet storage. This action decreases the circulating supply and frequently contributes to upward price pressure due to the tightening of market liquidity.
These large holders appear to be targeting a longer-term price increase rather than immediate liquidation, showing their confidence in Ethereum’s fundamentals following the Pectra upgrade.
