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Ethereum Records Highest Inflow Into Binance in Two Years
Ethereum has recorded its highest inflow into Binance in the past two years. According to reports, the token recorded increased spot inflows, the highest net inflows to the centralized exchange since 2023.
ETH is returning to Binance, as whales continue to increase their balances. The increased exchange flows may signal an increased interest in trading, taking up positions on the derivative market, or holding reserves for future sales. Binance saw the biggest inflow of ETH since April 2023, a significant rise after days of mostly balanced flows.
Exchange netflows are a short-term metric of sentiment, which quickly shifts. However, big movements may signal a market turning point. As of December 5, Binance saw a spike in inflows, with traders moving 162,084 ETH into the exchange, at a moment when ETH hovered just above $3,000.
Ethereum market shift triggered by big exchange inflows
Over the past few years, big exchange inflows have signaled a bearish turn for Ethereum. However, ETH sentiment based on the fear and greed index remains neutral. Binance is typically a preferred destination because it remains the most liquid exchange, also inviting riskier positions with higher leverage. The exchange inflow can sway the market, as it rivals most of the whale buying for a single day.
It remains uncertain if all deposits are used for selling or for other tasks like staking with Binance’s liquid staking facility. Despite this, analysts are also monitoring Binance’s order book depth to gauge if a sell-off would trigger a drop in Ethereum’s price. Overall, the ETH exchange reserves are still near an all-time low.
Binance reserves bounced a bit in the past month, hitting 3.88M ETH. The exchange flows may be part of strategic whale turnover, as Ethereum mostly relies on internal trading. Whales are constantly repositioning to achieve a lower average ETH price. Meanwhile, ETH open interest is inching higher, back to $17.62, with over 70% of traders going long. ETH is still shorted a bit more aggressively on Hyperliquid, with 41% in short positions.
On Binance, ETH has accumulated the bulk of open positions just above $3,000, while short positions up to $3,200 have the biggest share of liquidity. ETH bulls are expecting a breakout, as the network remains a key component of decentralized finance. In the past year, ETH increased its value locked by around 14%, remaining ahead of all other networks.
Ethereum remains the most liquid source of lending, in addition to offering high-capacity liquid staking to holders. For that reason, ETH is seldom sold in a panic, as whales hold onto the token for its utility and potential for passive income. ETH also remains close to 0.034 BTC, recently adding hopes of a further recovery to a higher range.
The post Ethereum records highest inflow into Binance in two years first appeared on Coinfea.
ETH is returning to Binance, as whales continue to increase their balances. The increased exchange flows may signal an increased interest in trading, taking up positions on the derivative market, or holding reserves for future sales. Binance saw the biggest inflow of ETH since April 2023, a significant rise after days of mostly balanced flows.
Exchange netflows are a short-term metric of sentiment, which quickly shifts. However, big movements may signal a market turning point. As of December 5, Binance saw a spike in inflows, with traders moving 162,084 ETH into the exchange, at a moment when ETH hovered just above $3,000.
Ethereum market shift triggered by big exchange inflows
Over the past few years, big exchange inflows have signaled a bearish turn for Ethereum. However, ETH sentiment based on the fear and greed index remains neutral. Binance is typically a preferred destination because it remains the most liquid exchange, also inviting riskier positions with higher leverage. The exchange inflow can sway the market, as it rivals most of the whale buying for a single day.
It remains uncertain if all deposits are used for selling or for other tasks like staking with Binance’s liquid staking facility. Despite this, analysts are also monitoring Binance’s order book depth to gauge if a sell-off would trigger a drop in Ethereum’s price. Overall, the ETH exchange reserves are still near an all-time low.
Binance reserves bounced a bit in the past month, hitting 3.88M ETH. The exchange flows may be part of strategic whale turnover, as Ethereum mostly relies on internal trading. Whales are constantly repositioning to achieve a lower average ETH price. Meanwhile, ETH open interest is inching higher, back to $17.62, with over 70% of traders going long. ETH is still shorted a bit more aggressively on Hyperliquid, with 41% in short positions.
On Binance, ETH has accumulated the bulk of open positions just above $3,000, while short positions up to $3,200 have the biggest share of liquidity. ETH bulls are expecting a breakout, as the network remains a key component of decentralized finance. In the past year, ETH increased its value locked by around 14%, remaining ahead of all other networks.
Ethereum remains the most liquid source of lending, in addition to offering high-capacity liquid staking to holders. For that reason, ETH is seldom sold in a panic, as whales hold onto the token for its utility and potential for passive income. ETH also remains close to 0.034 BTC, recently adding hopes of a further recovery to a higher range.
The post Ethereum records highest inflow into Binance in two years first appeared on Coinfea.
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