Ethereum (ETH) traded near $2,250 on October 31, 2026, as investors monitored persistent outflows from US spot Ether exchange-traded funds (ETFs) and concerns over a large amount of ETH held in wallets linked to the $6.3 billion Binance hack.

The combination of institutional withdrawals and potential selling pressure from attacker-linked wallets has raised concerns about Ethereum’s market supply. Investors are now watching ETF flows and on-chain transactions for signs of further price movements.

Ethereum ETF Outflows Reach 23 Consecutive Sessions

According to Glassnode, US spot Ether ETFs recorded outflows for 23 consecutive trading sessions, marking the longest withdrawal streak since these investment products began trading.

The sustained outflows indicate weakening institutional demand for Ethereum. The ETH price fell more than 5% on Thursday before stabilizing on Friday.

Data from Farside Investors showed that spot Ether ETFs recorded total outflows of $431.4 million between October 26 and October 30. Withdrawals reached their highest daily level of the period on October 30, totaling $155.7 million.

BlackRock’s iShares Ethereum Trust recorded $76.6 million in outflows on that day, while Grayscale’s Ethereum Mini Trust saw $34.1 million withdrawn.

Glassnode noted that traditional investors had accumulated substantial Ethereum positions in August and September. A return to positive ETF inflows could therefore provide a signal that institutional demand is recovering.

For now, traders are monitoring whether institutional investors will resume buying ETH or continue reducing their exposure to the cryptocurrency.

Binance Hack Raises Concerns Over 525,200 ETH

Beyond ETF outflows, the potential movement of Ethereum held in wallets linked to the Binance hack has become another concern for the market.

TRM Labs previously estimated that attackers held more than 420,000 ETH. A subsequent report dated October 31 identified approximately 525,200 ETH across attacker-linked wallets as of 16:51 UTC.

The difference between these estimates may reflect changes in wallet balances and the timing of the reports. Nevertheless, the large holdings have drawn attention because a substantial sale could increase selling pressure on Ethereum.

If the tokens are transferred to exchanges and sold, the resulting supply could weigh on ETH prices, particularly if market liquidity is insufficient to absorb the transactions.

Reports also indicated that attackers exchanged other assets for additional ETH, potentially increasing their exposure to the cryptocurrency.

Why Attacker-Linked Ethereum Cannot Be Easily Frozen

The situation differs from compromised stablecoins, which can sometimes be frozen by their issuing companies.

Tether and Circle have taken steps to freeze substantial amounts of compromised stablecoins. However, native ETH does not have a central issuer with the same ability to freeze individual balances directly.

As a result, Ethereum held in attacker-controlled wallets could remain a market risk if the holders decide to move or sell their assets.

Investors are therefore watching blockchain transactions for signs that these wallets may transfer ETH to exchanges or other services that could facilitate selling.

However, the existence of these holdings does not necessarily mean that the tokens will be sold immediately.

Binance Says 90% of Stolen Assets Have Been Replaced

Binance stated that it had replaced 90% of the assets stolen in the hack and assured customers that their ETH balances remained fully backed.

The exchange also prepared to resume withdrawals on November 1, 2026. According to the company, its recovery efforts included corporate funds, futures insurance reserves, and the Secure Asset Fund for Users (SAFU) emergency fund.

Although the replacement of customer assets addresses part of the financial impact of the incident, it does not eliminate the potential market risk associated with ETH remaining in attacker-linked wallets.

The distinction is important because customer compensation and the movement of stolen cryptocurrency are separate issues. Even if affected customer balances are restored, the original tokens may still circulate or be sold unless they are otherwise recovered or restricted.

Ethereum Price Outlook Depends on ETF Flows and Selling Pressure

Ethereum faces two important factors that traders are monitoring: continued withdrawals from spot ETFs and the possibility that large attacker-linked ETH holdings could enter the market.

A recovery in ETF inflows could indicate renewed institutional demand and help support the price. Conversely, continued withdrawals could signal that investors remain cautious.

At the same time, substantial transfers from attacker-linked wallets could increase uncertainty over available market supply. The actual price impact would depend on whether the assets are sold, the volume involved, and the market’s ability to absorb any additional supply.

For investors, monitoring ETF flow data, Ethereum price movements, and significant on-chain wallet transfers may help provide a clearer picture of changing market conditions.