The latest attempt at a recovery in Ethereum has been challenged by a new development that stands out in on-chain data. CryptoQuant data showed that the amount of ETH held on Binance has increased in recent days, while trading activity from large investors has weakened. This situation may make the market more fragile if demand loses strength.
Remarkable increase in Binance reserves
Since the end of June, Binance’s Ethereum reserve has increased from 3.64 million ETH to 3.87 million ETH. Thus, 221 thousand ETH was added to the reserves on the exchange. Binance stands out as one of the cryptocurrency exchanges with the highest transaction volume on a global scale. Although the increase in reserves in the stock exchanges does not mean a direct sale, it indicates that there are more assets that can be directed to the market in a short time.
CryptoQuant data reveals that while ETH supply on Binance has increased, the latest bullish attempt has not gained steam with major investor support.
The significance of this increase stems from the fact that it occurred during a period when the Ethereum price was below the higher levels seen in previous periods. More ETH on exchanges could lead to selling pressure becoming more visible if the buy side remains weak.
The pace of big investors has slowed down
CryptoQuant’s data on major investor activity showed a significant decline in high-volume transactions. The volume per transaction, which was around 1,500 ETH in mid-May, later dropped to around 1,000 ETH and fell into a weaker activity zone. This outlook suggests that institutional and high-balance investors are being more cautious.
Less trades by larger players may also affect the depth in the order book. The withdrawal of high volume buyers and sellers in the market may cause smaller transactions to produce more significant results on the price. In this case, volatility may increase in the short term even if the total trading volume does not change significantly.
Mixed outlook on technical indicators
According to TradingView data, ETH is trading at $1,777. The asset maintains its downtrend despite making multiple attempts to break through the resistance zone. On the other hand, support is maintained in the range of $ 1,700 and $ 1,750 and buyers are trying to cover sales in this region.
In order to be able to talk about a more permanent upward movement, the range between 1,900 and 2,000 dollars must be exceeded. The current technical outlook gives mixed signals. While the MACD indicator indicates that the downward momentum is slowing down, the Relative Strength Index remains below the middle line. This shows that despite the effort to balance, sellers maintain their superiority.
While the range of 1,700 to 1,750 dollars is viewed as support in ETH, the range of 1,900 to 2,000 dollars must be exceeded for permanent strength.
In the overall picture, the Ethereum market appears to be in the waiting phase. It is considered that if large buyers do not step in again and support the price, the increasing supply in the stock exchanges may put pressure on the market in the coming period.
