Ethereum may have cooled off after its recent rally, but on-chain activity continues to show signs of demand.
One of the clearest changes is happening on centralized exchanges. According to recent Santiment data, only 3.49% of Ethereum’s total supply is currently on tracked exchanges, the lowest level on record.
Since June 1 alone, another 1.16% of the total ETH supply has reportedly moved away from exchanges.
ETH Is Leaving Exchanges
The amount of ETH held on exchanges has been trending lower for some time. When fewer coins are kept on trading platforms, the immediately available supply for buying and selling becomes smaller.
That does not automatically mean ETH will rise in price. Exchange balances can fall for several reasons, and price still depends on demand.
One major factor is the amount of ETH being used elsewhere in the ecosystem.
🚨 Ethereum’s Tradable Supply Keeps Getting Smaller, Makes History
🔒 Ethereum keeps disappearing from exchanges. Just 3.49% of $ETH supply now sits on tracked exchanges, with another 1.16% of total supply moving off since June 1st. Exchange balances were already at their lowest… pic.twitter.com/ipnlhdtQjE
— Santiment Intelligence (@SantimentData) September 24, 2026
An estimated 35% of Ethereum is currently staked, while roughly $53 billion is locked in DeFi, according to the figures cited above. Staking and DeFi give holders alternatives to simply keeping ETH on an exchange.
Long-term holders and large treasury entities are also contributing to the decline in exchange balances. BitMine, for example, reported staking more than 5 million ETH earlier this month.
If demand increases while the amount of ETH readily available on exchanges continues to shrink, buyers may face a tighter liquid supply.
Ethereum Network Activity Remains Active
ETH recently moved from roughly $1,900 to $2,800 within a month before pulling back toward $2,660.
The price correction has not been accompanied by a major drop in network activity.
CryptoQuant data shows Gas Used at around 217.1 billion, representing a 0.26% increase. The change is small, but it suggests that demand for Ethereum block space has remained relatively steady despite the pullback in price.
Priority fees have moved more noticeably. The latest figure is around $464,000, up 26.74% over the previous 24 hours.
Priority fees are additional payments users make to increase the likelihood of their transactions being processed faster. A rise in these fees can indicate stronger competition for block space.
At the same time, Blocks Mined is relatively stable at around 7,147. That suggests the higher fees are not being driven by a significant increase in block production. Instead, users appear to be competing more heavily for the block space that is already available.
The Levels Traders Are Watching
CryptoQuant has identified the $2,600–$2,650 range as an important support area for ETH.
Whether that level holds will depend on how price and network activity develop from here. Continued demand for Ethereum block space alongside reduced exchange-held supply could remain an important factor for traders to watch.
For now, the bigger picture is that less ETH is sitting on exchanges while a significant amount is being used for staking, DeFi, and other on-chain activity.
