Following a strong rebound in Q2 2025, Ethereum's momentum is starting to cool down. New exchange activity may hint at what could happen next.
Ethereum Reserves on Binance
An analysis published by CryptoQuant reveals that Binance now holds over 4% of Ethereum’s total circulating supply — its highest level since May 2023. Such spikes in exchange reserves typically signal increased selling pressure.
Historical Context and Price Decline Potential
Historically, when ETH reserves at Binance reached similar levels, the price dropped from $1,900 to $1,600 before staging a swift recovery. Although no sharp price decline has occurred yet, the current inflow trend might suggest upcoming volatility.
Analysts' Views on Ethereum's Future
Analyst opinions are divided. Some, like BorisVest, suggest that the increasing reserves could indicate strategic accumulation ahead of a possible breakout. If Ethereum's price remains steady despite the greater availability on exchanges, it may reflect strong underlying buying interest.
For now, Ethereum remains stable, but investors are closely monitoring movements on Binance. Whether these reserves serve as a warning sign or part of a larger bullish setup remains to be seen.
