Binance’s Ethereum reserves continue to rise — now holding over 4% of ETH’s circulating supply. This level hasn't been seen since May 2023, and it suggests that a significant portion of ETH is being positioned either for potential selling or is already being sold.
This surge in exchange reserves can be interpreted as a bearish signal, especially if the inflows persist while ETH’s price weakens. Historically, rising supply on centralized exchanges during price drops often signals upcoming selling pressure, which could deepen the correction.
However, there's also a bullish perspective worth considering. If these ETH transfers are being positioned ahead of a potential rally, and price holds firm despite increasing reserves, it could indicate strong underlying demand or strategic positioning by whales.
It’s worth noting that the last time Binance held this much ETH, price dropped from $1,900 to $1,600 — but what followed was a sharp rally.
Given Binance's dominance in the market, this rise in reserves may simply reflect its growing trading volume and user base. What’s interesting is that despite the reserve growth, ETH’s price has not declined sharply — a possible sign of strength.
Whether this is a sell-the-rip scenario or a pre-pump positioning, traders should watch ETH reserves closely. The next move could be driven by whether this supply stays dormant or starts flooding the books.
Written by BorisVest
