Is Ethereum About to Break Out? Binance Supply Plummets While Prices Stay Strong

Data from Binance, the largest Ethereum reserve holder among exchanges, revealed that ETH supply on the platform declined while prices remained remarkably ￰0￱ the second half of August and September 3, the Exchange Supply Ratio (ESR), which measures the proportion of ETH held on exchanges relative to total supply, fell sharply from 0.041 to below ￰1￱ represents the largest drop observed in the period, occurring within just two ￰2￱ this, Ethereum’s price held near local highs of approximately $4,400 and showed no sharp ￰3￱ Exodus CryptoQuant analyst interprets this combination as a signal that investors are increasingly withdrawing ETH from Binance and instead favoring self-custody over exchange ￰4￱ behavior points to growing market confidence and a potential reduction in readily available sellable supply, even as overall demand remains strong.

Historically, declining ESR coupled with price consolidation has led to upward price movements, as reduced exchange liquidity limits the ability of sellers to exert downward ￰5￱ ESR levels have returned to figures last seen before June, which implies that previous profit-taking has largely been absorbed and that ETH is being reaccumulated into long-term ￰6￱ conditions further validate this bullish ￰7￱ instance, a decrease in leverage indicates less speculative pressure, stable funding rates suggest neutral sentiment in perpetual futures markets, and subdued activity from on-chain whales means that long-term holders are largely refraining from ￰8￱ factors indicate the beginning of a new bull phase, potentially driven by institutional participation rather than short-term ￰9￱ the same time, on-chain analytics platform Lookonchain pointed to an aggressive wave of Ethereum accumulation by whales and ￰10￱ just the past two days, large players purchased a total of 218,750 ETH worth approximately $942.8 ￰11￱ the most notable buyers, Tom Lee’s Bitmine snapped up 69,603 ETH, equivalent to $300 million, sourcing the tokens directly from BitGo and Galaxy Digital.

Meanwhile, five newly created wallets collectively acquired 102,455 ETH, roughly $441.6 million, from trading firm ￰12￱ Whales Return As Ethereum eyes reclaiming $4,500, the altcoin has found strong backers in whales and sharks who have quietly built their positions this year. Santiment’s data shows wallets holding 1,000-100,000 ETH upped their reserves by 14% in five months, a buying streak that began at the $1,400-$1,800 ￰13￱ Vector’s analysis further highlighted that between July and August, mega whales with 10,000+ ETH, alongside whales in the 1,000-10,000 cohort, added aggressively during ETH’s latest upward ￰14￱ suggest this accumulation has been key in easing bearish pressures and supporting the asset’s rebound after last month’s choppy action near record highs.