However, Ethereum’s recently found position seems to be at risk, according to the latest on-chain revelation. Recent data shows that ETH investors seem to be moving their tokens away from long-term storage and rather onto centralized trading platforms.
Data from CryptoQuant shows that the Ethereum reserves on Binance have not risen to this level since May 2023. Typically, the flow of ETH tokens to centralized exchanges — which usually offer trading services — suggests that the assets are being positioned to be offloaded or sold into the open market.
However, BorisVest also painted a bullish picture for the Ethereum price based on this on-chain observation. “If these ETH transfers are being positioned ahead of a potential rally, and price holds firm despite increasing reserves, it could indicate strong underlying demand or strategic positioning by whales,” the analyst said.
Furthermore, BorisVest mentioned that the last time the Ethereum reserves on Binance rose to this level, the price of ETH dropped from $1,900 to around $1,600. However, this brief price correction was followed by a sharp, abrupt rally to the upside.
As of this writing, the ETH token is valued at around $2,516, reflecting a 0.4% price increase in the past 24 hours.
