Ethereum faced dual pressures on October 31 as the token traded near $2,250 amid sustained exchange-traded fund withdrawals and lingering concerns over stolen assets held by wallets connected to the Binance hack.
US spot Ether ETFs recorded 23 consecutive outflow sessions, the longest streak since their launch, according to Glassnode data. From October 26 through October 30, five straight days of withdrawals totaled approximately $431.4 million. BlackRock's iShares Ethereum Trust accounted for $76.6 million of outflows on October 30, while Grayscale's Ethereum Mini Trust lost $34.1 million that day.
Glassnode noted that traditional investors had purchased heavily during August and September, suggesting the recent outflows represent a shift in institutional positioning. The token fell more than 5% on Thursday but recovered some ground on Friday.
Stolen ETH Holdings Pose Supply Risk
Wallets linked to the Binance hack held an estimated 525,200 ETH across multiple addresses at 16:51 UTC on October 31, according to blockchain analytics reports. An earlier estimate from TRM Labs placed attacker-linked holdings above 420,000 ETH, though the different reporting times and wallet scopes mean these figures are not directly comparable.
A large position could weigh on the Ethereum price if the holder sells into the market. The impact would depend on trade size, timing, and available liquidity.
On October 29, one linked wallet deposited approximately $60 million in USDT as collateral and borrowed 19,762 wrapped ETH on the Aave lending protocol before the platform restricted the account's activity. Aave's market freeze prevented new transactions but did not seize the borrowed funds. Researchers indicated this loan represents only a portion of the estimated holdings, with other stolen assets exchanged for ETH.
Binance Recovery Efforts
Binance stated it has replaced 90% of assets affected by the hack using corporate funds, futures insurance reserves, and its SAFU emergency fund. The exchange said customer ETH is fully backed and announced plans to resume withdrawals on November 1.
Unlike stablecoins, which Tether and Circle were able to freeze, native ETH has no central issuer capable of directly blocking transactions. The replacement purchases by Binance are separate from the ETH still held in attacker-linked wallets, meaning the Ethereum price could face a supply overhang even after customer balances are restored.
