Binance ETH Reserves Drop to May Lows, Signal Bullish Momentum
On-chain data shows Binance ETH reserves fell from 4.69 M to 3.87 M ETH between August and October, marking an 820,000 ETH outflow. Binance ETH reserves are now at levels last seen in May. The outflows reflect a shift to self-custody and whale accumulation, cutting exchange supply and lowering sell pressure. Historically, dips in Binance ETH reserves below 4 M have preceded bullish price rallies. Traders should monitor Binance ETH reserves, exchange outflows, market liquidity, and trading volume to assess potential bullish momentum.
Bullish
The sustained decline in Binance ETH reserves indicates a reduction in exchange supply. Historically, when Binance ETH reserves drop below 4 M, liquidity constraints have triggered ETH price rallies. In the short term, tighter exchange supply could amplify price moves, as fewer coins are available for sale. Over the long term, increased self-custody and whale accumulation strengthen holder conviction, reducing sell pressure and setting the stage for sustained bullish momentum. Traders monitoring Binance ETH reserves, exchange outflows, and trading volume can leverage this signal to time entries and anticipate potential ETH price increases.