Binance Ethereum Supply Drops to 6-Month Low Amid Accumulation
On-chain data from CryptoQuant shows Ethereum’s supply on Binance has declined steadily since mid-2025, reaching its lowest level since May at around a 0.0327 exchange-supply ratio. Traders are withdrawing ETH into cold wallets, signaling a shift from short-term selling to long-term accumulation. Historically, reduced exchange supply eases selling pressure and supports bullish momentum over the medium to long term.
Technically, Ethereum has recovered to the $3,500 support level and found a floor at the 200-day moving average. Price now faces resistance in the $3,600–$3,700 zone where the 50- and 100-day moving averages converge. A break above this range could target $3,900–$4,000. However, muted trading volume and cautious sentiment suggest near-term consolidation.
Overall, the persistent outflow of ETH from Binance underscores growing conviction among long-term holders. If market catalysts like network upgrades, ETF approvals or renewed DeFi activity emerge, Ethereum may be poised for its next bullish leg.
Bullish
The six-month low in Ethereum supply on Binance indicates a sustained migration of ETH into cold storage, reducing immediate sell-side liquidity. Historically, such supply contraction on major exchanges has preceded bullish price phases by alleviating market pressure. The data aligns with past accumulation cycles—when exchange reserves dipped before subsequent rallies. Technically, ETH reclaiming $3,500 and holding the 200-day moving average suggests a base is forming, while a breakout above the 50- and 100-day averages near $3,600–$3,700 could trigger further gains. In the short term, muted volume may lead to consolidation, but long-term holders’ conviction and potential catalysts like ETF approvals or DeFi resurgence underpin a bullish outlook.