Ethereum Exchange Supply Declines

Ethereum exchange supply is shrinking following the October 29 Binance hack, according to data from u.today. The share of the total token supply held on trading platforms dropped from 3.56 percent to 3.20 percent between October 28 and November 2. This downward movement represents a total decline of 0.36 percent over the multi-day period. Just over half of the reduction occurred on October 29, which was the exact day of the security breach.

TRM Labs reported that hackers drained approximately 200,630 tokens from the hot wallet of Binance during the incident. Exchange balances across top platforms initially grew by roughly 39,000 tokens on October 29 despite the exploit. A much larger reduction took place on November 1 and November 2 after normal withdrawal functions were reopened by platforms.

Liquidity Contraction on Platforms

Major trading platform addresses lost nearly 297,000 tokens between October 28 and November 2. That reduction accounts for 5.4 percent of the holdings on those specific platforms and points toward substantial liquidity thinning. Analysts note that falling balances on trading venues do not automatically mean accumulation by investors. The assets may have been transferred into cold storage, moved between private addresses, or sent to alternative trading platforms.

On-chain metrics alone cannot verify the final destination of the withdrawn coins. The two-stage reduction in exchange-held tokens might reflect an overall liquidity contraction rather than a minor panic-fueled reaction. Data from The Block shows that Bitmine added 8,573 tokens to its treasury last week, bringing its total holdings to 6.06 million tokens while market observers noted a muted immediate response to the security breach.

Market Prices and Technical Levels

Ethereum remains under bearish pressure on daily charts as trading activity unfolds near the $2,264 level. Prices sit below several moving averages after pulling back from earlier October highs around $2,800. Selling pressure remains visible on the daily chart, with the range between $2,300 and $2,400 potentially acting as overhead resistance.

A sustained recovery above those price barriers would signal an improvement in broader market sentiment. If buyers fail to defend the $2,200 area, the asset could experience further downside movement. Market participants continue to monitor whether the missing tokens have truly left active trading circulation.

According to The Block, Bitmine added 8,573 tokens last week, bringing its total holdings to 6.06 million tokens. Tom Lee pointed out that the broader market reaction to the security breach was muted.

Data from The Block also shows that United States spot bitcoin ETFs experienced $643 million in outflows on Friday. This marked the largest single-day reduction for those funds since June 25, occurring immediately after the Binance incident.