A new analysis by BorisVest, shared through CryptoQuant, reveals growing signs of sell-side pressure on Ethereum (ETH), as key metrics from Binance suggest the market may be preparing for downside.
Despite ETH’s recent range-bound behavior between $2,400 and $2,700, the underlying data points to a cautious market environment.
Rising Exchange Reserves
Since December 2024, Ethereum reserves on Binance have climbed from 3.779 million ETH to 4.216 million ETH. This increase indicates that large holders are moving assets onto the exchange — a classic precursor to potential selling activity. Exchange-held ETH is typically seen as “ready to trade,” suggesting heightened sell intentions.
Netflows Reflect Exit Activity
Over the past three days, Binance has recorded successive inflows of 110K, 116K, and 120K ETH, even as ETH attempted to rally. This pattern implies traders used the price bounce to exit positions. Each surge in price was quickly capped, with ETH falling back into its prior range — further confirming distribution behavior.
Exchange Supply Ratio Aligns with Bearish Setup
The exchange supply ratio — measuring the share of ETH supply held on Binance — has also risen alongside price.
This uptick underscores that more ETH is being parked on the exchange, reinforcing the narrative of increasing sell pressure.
Taker Buy/Sell Ratio Misleads Bulls
Despite aggressive buyer activity shown by a spike in the taker buy/sell ratio, ETH failed to sustain upward momentum. Instead, this demand provided liquidity for larger sell orders. The rally became a selling opportunity rather than a breakout catalyst.
According to the report if the $2,400 support level fails, a deeper pullback may follow. However, a strong bounce at that key threshold could reset sentiment and initiate an upside breakout beyond the current range. For now, caution dominates the Ethereum landscape.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/market/ethereum-faces-sell-pressure-as-binance-data-signals-bearish-underpinning/