Ethereum CEX Balance Plummets: Over 31 Million Coins Withdrawn in February, CEX Platform Balance Hits Lowest Level Since 2020

On March 4th, according to CryptoQuant data, over 31 million ETH were withdrawn from centralized exchanges in February, marking the largest monthly outflow since November of last year. Among them, Binance saw approximately 14.45 million ETH withdrawn, nearly half of the total outflow; CEX withdrawals totaled about 3.83 million ETH; and another 1.04 million ETH were withdrawn from CEXs. Continuous outflows have reduced liquidity available for spot trading. After tokens are transferred to private wallets or staking platforms, short-term liquidity decreases. When market activity picks up again, the shrinking exchange balances could intensify price volatility. Crypto analyst Arab Chain states that although ETH prices still hover around $2,000, derivatives data shows a divergence between small retail buyers and large sellers. The market’s focus is on how prices will react once retail and whale trading directions align. CryptoQuant data also indicates that Ethereum reserves on CEX platforms have fallen to about 3.46 million ETH, the lowest level since 2020. Previously, reserves peaked at over 5 million ETH during the cycle, then entered a gradual decline. Hyblock data shows divergence among different trading sizes. Small orders ($0–10,000) have a cumulative delta trading volume close to $95 million, indicating sustained retail-driven buying. Meanwhile, the CVD in the $10,000–$100,000 range is about -$162 million, and above $100,000, it approaches -$357 million, suggesting large participants are net sellers during the same period. The buy-sell ratio recently turned slightly positive, rising to 0.2 before falling back to 0.03, indicating a slight increase in buying but overall lack of broad consensus. Open interest decreased from nearly $10 billion at the end of February to about $9.41 billion, with leverage slightly reduced. Analysts believe that if retail accumulation continues while large holders slow their selling pressure, bullish and bearish forces may become more aligned. Under this scenario, with supply on trading platforms shrinking, if ETH stabilizes above $2,000–$2,150, it could amplify upward price momentum.