430,000 ETH leave Binance as Ethereum holds $2,412: the consequences for price and custody

The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Always conduct your own research.Ethereum balances on trading venues have fallen to a multi-year low, with Binance alone losing 430,000 ETH since August 25. Why the price still sits at $2,412 on Friday evening, and what that means for your custody.Ethereum traded at $2,412.07 on Friday evening, down 1.85 percent on the day and 2.84 percent on the week (CoinGecko, as of October 16, evening). At the same time, the amount of Ethereum sitting on centralised trading venues is at its lowest in years. Put those two facts together and you get the story doing the rounds this weekend: supply on exchanges is shrinking, so the price has to rise. That equation does not add up, and the reason sits in the same data set. An exchange reserve is the amount of a cryptocurrency held in the accounts of trading venues, ready to be sold without any further step. When it falls, balances are moving into self-custody, into staking, or into products that tie them up for longer. Less of it is available for immediate selling pressure. That...