Ethereum blockchain’s native coin, Ether (ETH), is down more than 7 percent over the past week, and fresh exchange data shows that it may see more pullback in the coming days. ETH supply on Binance has hit its highest level since February 2025.
Ethereum supply on Binance surges to 3-month high
The latest reading from the Ethereum Exchange Supply Ratio (EESR) on Binance suggests an increase in ETH supply on the trading platform earlier in May, before seeing a slight pullback over the past few days.
To explain, the ESR gauges the percentage of ETH available on exchanges, in relation to the total circulating supply. An increasing ESR hints that more ETH is ready for selling, which can increase short-term volatility.
According to data obtained on Tuesday, the ESR rose to around 0.0326 during early May, marking its highest level since February. Interestingly, it also coincided with ETH trading near its recent peak of $2,370.
Although the ratio has since slightly retreated to around 0.0320 as ETH’s price dwindled to $2,128, it still remains elevated. This confirms that ETH supply is still higher on Binance compared to previous months.
This increase in the ESR follows a period of gradual supply reduction during March and April when it fell below 0.0290. That period was also marked by relatively stable ETH price action, and a decline in short-term trading activity.
That said, it is important to note that an increase in supply on exchange in itself doesn’t mean that a sell-off is imminent. However, it does show easy availability of assets that can be sold should volatility return to the market or if investor sentiment turns overly bearish.
Institutional interest still high in ETH
Although the risk of a sell-off in ETH may be relatively high right now, institutional interest in the largest altcoin by market cap is still high. For instance, JPMorgan recently launched its second tokenized money market fund on the Ethereum blockchain.
Similarly, Jane Street’s Q1 2026 filing with the U.S. SEC showed that it had trimmed its Bitcoin (BTC) and increased exposure to ETH. However, weak DeFi activity on the blockchain remains a hurdle for ETH’s price to gain momentum.