Ethereum Price Stalls as Binance Data Signals Selling Pressure
Ethereum has been treading water between $2,400 and $2,700 over the past several days, but activity on Binance suggests there’s more going on beneath the surface. Let’s break it down.
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📊 1. Exchange Reserves Are Climbing
Binance’s Ethereum reserves have grown noticeably — rising from 3.779 million to 4.216 million ETH since December. Typically, when crypto moves from private wallets to exchanges, it signals intent to trade or sell. This increase points to a mounting sell-side presence waiting in the wings.
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💸 2. Netflows Highlight Heavy Deposits
In just the last three days, Binance saw inflows of 110K, 116K, and 120K ETH respectively. This happened even as ETH attempted to rally. The pattern indicates sellers took advantage of price upticks to offload positions, which immediately dragged the price back down into its range — a classic sign of distribution during market rallies.
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🏦 3. Exchange Supply Ratio Backs It Up
Another confirming signal comes from the Exchange Supply Ratio, which tracks how much of ETH’s total circulating supply is held on Binance. This metric increased alongside the recent rally, reinforcing the narrative of growing sell-side pressure.
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⚔️ 4. Taker Buy/Sell Ratio Provides Context
Interestingly, the Taker Buy/Sell Ratio — which measures market aggression — surged during the recent price rise, reflecting increased buyer activity. But instead of pushing prices higher, this buying was met with large sell orders, effectively absorbing the demand and halting momentum. The market’s failure to follow through suggests the current liquidity is being used for exits, not breakouts.
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🔍 Summary
The Binance data paints a cautionary picture:
Exchange reserves are increasing
Netflows show consistent ETH deposits
More supply is concentrated on the exchange
Buyer aggression is meeting heavy sell pressure
If $2,400 support cracks, the door opens for further downside. However, a sharp bounce from that level could flip sentiment and fuel a breakout past the upper range.
