Ethereum Exchange Supply Plummets on Binance — Is a Short Squeeze Brewing?

On-chain data is flashing a compelling signal: Ethereum’s Exchange Supply Ratio on Binance has dropped to a multi-week low. This metric tracks the share of ETH held on Binance compared to its total circulating supply — and right now, it’s in notable decline.

Why does this matter? Because when ETH flows off exchanges, especially one as dominant as Binance, it often means investors are moving assets into cold storage or DeFi — both of which reduce immediate selling pressure. In short: fewer coins on exchanges = less fuel for selloffs.

Zoom Out: This Isn’t Just Noise — It’s a Macro Signal

Binance hosts the lion’s share of global ETH trading volume. A supply drop here points to a broad sentiment shift among whales and retail traders alike — a signal of growing conviction or preparation for longer-term positioning.

April 11: A Playbook for What Might Come

History offers a clear precedent. In the lead-up to April 11, ETH’s exchange supply ratio on Binance plunged. The result? A swift rally from below $1,700 to nearly $1,950 — over 14% in under a week. That move began as sell pressure dried up and demand stepped in.

Now: Liquidity Clusters Are Stacking Above $1,900

Liquidation heatmaps show an aggressive buildup of short positions between $1,900 and $2,000. These zones are becoming prime targets for large players looking to trigger liquidations and ignite a squeeze.

Key Takeaway: Conditions Are Primed

ETH supply on Binance is shrinking.

Sell-side liquidity is drying up.

Short positions are piling into predictable zones.

This is a classic recipe for a short squeeze. If history repeats — or even just rhymes — Ethereum could be on the cusp of another sharp upward move, with $1,900–$2,000 acting as a high-leverage magnet.