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Analysts at on-chain data platform CryptoQuant spotted a new Ethereum (ETH) buying trend by Binance traders. This has ignited expectations for a bullish Ethereum price rebound in the mid-to-long term.
Ethereum buy on Binance spike
Analyst Amr Taha noted that Ethereum purchases on Binance are rising, while sell pressure is easing. This shift is clearly visible in the latest ETH reserve data.
Per the data, the Ethereum reserve on the Binance exchange has dropped to 3.3 million ETH, falling below the previous lows seen in February. The reserve fell to 293.53 million ETH in February and 3.49 million ETH on Aug. 29, 2024, pointing to net withdrawals.
Similar to Ethereum, Bitcoin reserves also moved lower. It declined from around 670,000 BTC recorded in early February to 636,000 BTC in early April.
In contrast, stablecoin reserves on Binance are rising, suggesting an increase in selling pressure. On April 2, Tether (USDT) reserves stood at $38 billion, surging from the $35 billion recorded on March 12.
In a similar move, Circle (USDC) reserves increased from the $4.6 billion seen in February to $6.6 billion on April 2.
Imminent ETH price breakout?
Less Ethereum sitting on Binance could create a more supportive setup for price expansion, according to analyst Amr Taha.
When people move Ethereum from exchanges, it indicates they are not planning to sell immediately on the spot market. This reduces the amount of coins available for quick selling, lowering immediate sell-side pressure.
On the other hand, growing stablecoin balances mean traders have moved more buying power on the exchange in a dollar-like form. They can easily convert those USDT and USDC into ETH when they want to buy.
Generally, this combination is interpreted as potentially bullish for prices in the short-to-medium term. If this trend continues, it can create a more supportive environment for price recovery and expansion, assuming that other market factors align.
Currently, ETH is priced at $2,030, down 4.9% over the past 24 hours. The trading volume also decreased by 4.2% within this time frame to $20.2 billion.
Despite reduced retail investor interest, institutions are actively accumulating and staking ETH. Earlier this week, Bitmine staked an additional 167,578 ETH, valued at about $340 million.
Also, Arkham Intelligence disclosed that Fidelity Investments has purchased Ethereum worth over $140 million.
Dan Burgin
U.Today Editorial Team
Vladislav Sopov
