According to a recent CryptoQuant Quicktake post by on-chain analyst Amr Taha, ETH reserves on Binance have been steadily falling since April 14. Taha noted that the exchange’s ETH reserves declined from slightly less than 4.2 million to 3.9 million by May 14 – a drop of around 300,000 ETH in just one month.
Taha proposed two possible reasons behind the drop in Binance’s ETH reserves. First, he suggested that investors may be transferring ETH to cold wallets or deploying it in decentralized finance (DeFi) protocols for security or yield generation.
Second, institutional investors may be withdrawing large amounts of ETH for purposes such as over-the-counter (OTC) deals, private investments, or staking. These activities reduce exchange reserves without necessarily creating selling pressure. Taha concluded:
The 300,000 ETH decline in Binance’s reserves suggests a notable shift in investor behavior – possibly toward long-term holding, staking, or institutional accumulation. Although this may alleviate immediate selling pressure, traders should closely observe this trend and its interaction with overall market demand.
Additional data points suggest that ETH may be gearing up for a major rally in the short to medium term. In a separate CryptoQuant post, contributor BlitzzTrading analyzed the behavior of ETH whales.
For context, ETH whales are typically wallet addresses that hold more than 10,000 ETH. BlitzzTrading shared the following chart, illustrating that the last major correction in ETH occurred after whales took profits when the price approached $4,000.
Currently, these whales do not appear to be engaging in significant profit-taking. However, BlitzzTrading advised closely monitoring this metric, as a spike in whale selling could signal a potential correction once ETH enters overbought territory.
