Ethereum has been testing key demand levels after slipping below the $4,600 mark, a breakdown that has intensified selling pressure across the market. Bulls, who recently drove ETH to new highs, are now losing control as momentum fades, and fear is beginning to creep back into 0 are closely watching whether Ethereum can hold support zones or if a deeper retrace is on the 1 Reading: Bitcoin Supply In Profit Hits Historical Threshold – Echoing Past Patterns Yet, beneath this volatility, on-chain data tells a different 2 analyst Darkfost shared fresh insights showing that Binance’s Ethereum reserves have dropped by more than 10% in less than a 3 exchange balance fell from nearly 5 million ETH to just under 4.5 million, a sharp decline that points to strong demand.
Typically, when reserves on major exchanges fall, it means investors are moving their ETH into private wallets or DeFi protocols — often a bullish sign of 4 speculation and short-term fear may be fueling the current drop in reserves, the fundamentals behind Ethereum remain 5 demand, coupled with consistent outflows from exchanges, signals that large players are positioning for the long 6 many, this divergence between price action and fundamentals could shape Ethereum’s next decisive 7 Reserves On Binance Decline In less than a week, Ethereum reserves on Binance have recorded a steep decline, dropping by more than 10%. According to data shared by analyst Darkfost, the amount of ETH available on the exchange fell from 4,975,000 on August 23 to just 4,478,000 8 reduction of nearly half a million ETH underscores a powerful shift in market dynamics, signaling that investors are actively withdrawing their holdings from the 9 exchange reserves fall at this pace, the implication is clear: users are choosing to move their assets into self-custody or deploy them in decentralized finance protocols to earn 10 behaviors are widely regarded as bullish signals, as they reduce the immediate supply of ETH available for trading and selling on centralized 11 trend often points to stronger conviction among holders and a preference for long-term accumulation rather than short-term 12 it is possible that internal transfers within Binance may have contributed to the overall decline, the consistent pace of outflows over several days suggests genuine market demand is at 13 drop in reserves comes at a time of heightened volatility for Ethereum, reinforcing the narrative that large investors continue to accumulate, even as price action remains choppy.
Ultimately, the decline in Binance’s ETH reserves highlights an underlying strength in Ethereum’s 14 fears of selling pressure, the data suggests demand is firm, with investors positioning for what many expect to be the next phase of Ethereum’s 15 Reading: Bitcoin Normalized Address Activity Drops To 30%: Selling Pressure Eases Bulls Lose Support As Sellers Pressure Market Structure Ethereum is trading near $4,338 after slipping below the $4,400 level, signaling growing selling pressure in the short 16 4-hour chart highlights a shift in momentum, with ETH now trading under the 50-day ($4,554) and 100-day ($4,499) moving 17 breakdown suggests that bears have gained the upper hand after weeks of 18 now, ETH is holding above the 200-day moving average at $4,167, which acts as the last major line of defense for the broader 19 bulls can stabilize the price here, Ethereum could attempt a rebound back toward the $4,500–$4,600 range, but momentum remains 20 inability to sustain strength above $4,600 has left ETH vulnerable to further 21 Reading: Bitcoin Taker Buy/Sell Ratio Plunges To Lowest Since 2018: Strong Sell Signal Flashes If selling pressure continues, a deeper retrace toward $4,200 cannot be ruled 22 level coincides with prior demand zones and aligns with the 200-day moving average, making it a critical support area.
Conversely, reclaiming $4,500 would be the first signal that buyers are regaining 23 image from Dall-E, chart from TradingView
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