Ethereum investors are withdrawing ETH from Binance at the highest rate in three years, a trend that analysts suggest could indicate increased accumulation and a shift towards longer-term holding strategies. According to CryptoQuant, the monthly average of ETH withdrawal transactions from the exchange has surpassed 90,000, a level not seen since 2021. This surge is approximately double the rate observed at the start of the year.
On-Chain Data Points to Accumulation
This significant increase in withdrawals is interpreted by some as a sign of investors moving Ether from exchanges to private wallets or custody solutions, a common behavior associated with a longer-term investment outlook. CryptoQuant observed that this trend has been “fairly sudden” and notable. The data also suggests that the current accumulation of Ethereum may be stronger than that of Bitcoin, which has reportedly been struggling to maintain its May high.
Ethereum’s Price Performance and Technical Outlook
Ethereum itself has seen a substantial price increase, climbing 6% over the past 24 hours to trade above $2,700 at press time. Over the last three months, Ethereum has risen by 80% from $1,510. According to CryptoQuant, this rally has also altered the cryptocurrency’s market structure, moving above April’s high and indicating stronger momentum.
Technical analysis, attributed to Crypto Patel, suggests that Ethereum’s higher-timeframe structure has turned bullish. The price action has followed strong buying from the $2,300 demand area, and ETH has reclaimed a fair value gap between $2,483 and $2,584. The next potential upside area is identified between $2,715 and $2,900, with a larger resistance zone situated between $3,070 and $3,404. Crucially, the $2,300 level is noted as a key structural support, while the zone between $1,647 and $1,744 could become relevant if the current structure breaks down. The bullish setup is considered valid as long as ETH holds the $2,360 level.
ETF Flows Present a Mixed Picture
However, the context of exchange-traded fund (ETF) flows presents a more mixed picture. US-based Ethereum ETFs experienced significant outflows during the past week, with $141.4 million withdrawn on Tuesday, $224.1 million on Wednesday, and $39.2 million on Thursday. While Monday and Friday saw inflows of $121 million and $143.8 million, respectively, these were not enough to offset the mid-week selling. Consequently, August’s ETF inflows have fallen below $190 million.
Conclusion and Uncertainties
Despite the mixed ETF performance, the sustained high rate of ETH withdrawals from Binance remains a key signal. If this trend continues, it could serve as an important indicator for Ethereum’s market direction in the coming months. Nevertheless, uncertainties remain regarding the continuation of these withdrawal patterns and whether ETH will maintain its current bullish setup above the $2,360 support level.
Why This Matters
The materials describe a narrow update: The monthly average of ETH withdrawal transactions from Binance has exceeded 90,000, a level not seen in three years. Whether the current trend of ETH withdrawals from Binance will continue.
Broader Context
Source materials place the factual news in this context: Ethereum climbed steadily on Monday.
