Ethereum’s Exchange Inflow (Total) data on Binance shows a sharp jump in daily deposits, with inflows reaching approximately 1.63 million ETH in the latest reading — the highest value recorded since 2022 This exceptional surge comes at a sensitive time, coinciding with Ethereum’s price falling to around $2,200, giving this movement significant implications from the perspective of market behavior and liquidity.
Increased inflows to exchanges are typically interpreted as an indicator of potential selling intent, as investors move coins from personal wallets to exchanges in preparation for trading or liquidating part of their holdings. In the case of Binance, one of the largest exchanges by liquidity, recording the highest inflow in more than two years reflects a clear shift in the sentiment of a segment of market participants.
The timing of this surge further underscores its importance, as it coincides with a relatively weak price environment for Ethereum following a series of declines. This correlation between the price drop and the surge in deposits may indicate that some investors have chosen to reduce risk or partially exit their positions, particularly those who bought at higher levels.
Conversely, a surge in inflows does not necessarily signal an immediate sell-off or price collapse. It may instead represent a redistribution of liquidity among portfolios and platforms, or a prelude to increased short-term trading activity. Nevertheless, the exceptional size of these deposits places the market in a heightened state of caution, making close monitoring of price action in the coming days essential.
Written by Arab Chain