Ethereum’s recent gains are facing a potential challenge, as on-chain data suggests a noticeable shift in investor behavior.
Following a strong rebound in the second quarter of 2025, Ethereum’s momentum appears to be cooling—and new exchange activity could hint at what’s next.
An analysis published on CryptoQuant reveals that Binance now holds more than 4% of Ethereum’s total circulating supply—its highest level since May 2023. Historically, such spikes in exchange reserves have signaled increased selling pressure, as investors often transfer assets to platforms like Binance ahead of liquidation.
The data has prompted caution among market watchers. The last time Binance’s ETH holdings reached this level, the price dropped from $1,900 to $1,600 before staging a rapid recovery. While no sharp price decline has occurred yet, the current inflow trend is being interpreted by some analysts as a potential precursor to volatility.
However, not everyone sees this development as bearish. According to analyst BorisVest, the rising reserves could also reflect strategic accumulation ahead of a possible breakout. If Ethereum’s price remains steady despite the increased availability on exchanges, it may indicate strong buying interest under the surface.
For now, Ethereum remains stable, but investors are keeping a close eye on Binance flows. Whether these reserves are a warning sign or part of a larger bullish setup remains to be seen.
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/investors-move-ethereum-to-exchanges-price-crash-or-setup-for-rally/