Ethereum held on exchanges experienced a noticeable decline following a hacking incident at Binance on October 29. Though initial on-chain data suggested panic withdrawals, the movements may actually reflect a contraction in market liquidity. Between October 28 and November 2, the percentage of Ethereum held on exchanges dropped from 3.56% to 3.20% of total supply. This 0.36 percentage point decrease was significantly influenced by the announcement on October 29 of the Binance hack.