According to the latest Binance proof of reserves report released on August 1, there has been a significant reduction in Ethereum's reserves, drawing attention to the asset's status on the platform.
Decrease in Ethereum Reserves
The reserves of Ethereum on Binance have decreased by nearly 10%, amounting to approximately 4.55 million ETH as of early August. This decline of 496,984 ETH compared to the previous month has raised concerns among traders.
Changes in Other Asset Reserves
While Ethereum's reserves have dropped, other assets have shown varied changes. USDT reserves increased by over 258 million (+0.87%), while Bitcoin reserves rose by 17,167 BTC (+2.99%). Even Binance's native token, BNB, experienced a slight increase of 0.38%.
Analysis of Ethereum's Market Strength
Despite the decrease in reserves, Ethereum is showing signs of increasing market strength. After a brief decline toward the $3,500-$3,600 range, the price has broken through a descending trendline, indicating a bullish breakout. The support of the 26 EMA remains strong, and the RSI is in a healthy range (around 66). The decrease in reserves might also contribute to upward price movements for Ethereum.
The reduction in Ethereum reserves, combined with positive market signals, creates conditions for potential price growth of the cryptocurrency. A significant portion of ETH has likely been transferred to cold wallets or used in DeFi applications, positively impacting the long-term outlook of the asset.
