Ethereum metrics from Binance are flashing mixed signals. While long-term indicators suggest strength, short-term signals point to indecision and pressure.
Exchange Inflow (Mean) has increased significantly since late 2024, reflecting mounting sell pressure. Similar to 2022–2023, investors are sending ETH to exchanges — typically a bearish move.
In contrast, Exchange Outflow (Mean) has been rising consistently since October 2023. This indicates that large holders are withdrawing ETH from Binance, often a sign of long-term accumulation and confidence.
During Ethereum’s rally to $4,000, funding rates turned overly positive, revealing excessive long exposure. That signaled a local top, followed by a steep correction to ~$1,400. Currently, funding rates hover near neutral — showing market indecision. If shorts rise and funding dips below zero, a short squeeze may form, but such a setup hasn't materialized yet.
The Taker Buy/Sell Ratio showed intense selling pressure in late 2024 and early 2025, preceding Ethereum’s sharp drop. However, we now see signs of stabilization: sellers are fading, and buyers are slowly regaining momentum.
Summary:
Inflow rising → Ongoing sell pressure; short-term bearish.
Outflow rising → Long-term accumulation; bullish.
Funding neutral → No clear leverage bias; market undecided.
Taker Ratio stabilizing → Selling exhaustion; potential rebound.
While short-term risks remain, long-term on-chain signals hint at a possible Ethereum recovery — once the accumulation phase matures and retail pressure fades.
Written by BorisVest
