Ethereum Supply Crisis? Exchanges Can’t Keep Up With Surging Withdrawals

Ethereum (ETH) briefly surged above $4,400 on Thursday, after a 3% gain over the past 24 ￰0￱ intense volatility, September 2025 closed on a strong ￰1￱ markets cautiously optimistic entering October, Ethereum now finds itself in conditions that could set the stage for a significant bullish ￰2￱ Supply Crunch Alert For the first time in history, Ethereum (ETH) is leaving exchanges faster than they can accumulate ￰3￱ has created an “aggressive” supply ￰4￱ data shared by Alphractal shows billions of dollars’ worth of ETH have flowed out of trading platforms, whether measured in netflow or USD ￰5￱ Exchange Flux Balance has turned negative for the first time ￰6￱ metric tracks cumulative netflow.

Historically, high values mean exchanges were stockpiling ETH as inflows exceeded outflows, but the current negative reading shows that exchanges can no longer keep up with ￰7￱ points to surging demand from both institutional and retail investors, which is indicative of the strongest market-maker interest in Ethereum ever ￰8￱ available supply shrinking on exchanges could potentially set the stage for a significant price ￰9￱ this trend continues, ETH could face a historic supply-driven upside, as scarcity on exchanges amplifies buying pressure across the crypto ￰10￱ Predict Parabolic Run As Ethereum reclaimed a major support level of $4,250 and surged past it, the next important milestones stand at $4,500 and $4,750 before a potential new all-time high.

However, a break below $4,250 could push ETH down toward $4,000, according to market expert Ted Pillows’ ￰11￱ analyst Michaël van de Poppe said that he expects strong outperformance from Ethereum in the coming ￰12￱ anticipates Bitcoin to initially bounce, then correct slightly, while ETH gains momentum, which could potentially lead to a broader rally across the entire crypto ecosystem, supported by the BTC pair holding ￰13￱ pseudonymous researcher ‘EtherNasyonaL’ noted that Ethereum appears poised for a major upward move, as the cryptocurrency is showing patterns consistent with prior market cycles. Historically, ETH has followed a three-step trajectory: breaking major resistance, undergoing a running retest, and then entering a parabolic ￰14￱ note that the market is now in the third cycle, and ETH has once again tested the same critical horizontal support level seen in previous ￰15￱ both these instances, this pattern was followed by a sharp, parabolic price surge.