Ethereum (ETH) is currently testing a major descending resistance line on the technical chart. While retail sentiment hopes for a breakout, on-chain data from Binance (7-Day Netflow) reveals a concerning setup that contradicts a bullish continuation.
Key Data Points:
Supply Wall Forming: We are seeing a massive net inflow of $1.6B in ETH to Binance. Whales moving this volume to spot exchanges typically signals an intention to sell or distribute assets at resistance levels.
Diminishing Buying Power: Conversely, a total of $2.3B in stablecoins (USDT & USDC) has flowed out of the exchange. Significant stablecoin outflows at a price ceiling indicate a lack of immediate buying pressure from smart money.
Verdict:
The market is showing a classic bearish divergence: rising exchange supply versus falling purchasing power.
Attempting a breakout with $1.6B of potential sell pressure and drained stablecoin reserves significantly increases the risk of a bull trap or a sharp rejection. Caution is advised until stablecoin inflows turn positive to support the price.
Written by CryptoOnchain
