- Ethereum reserves on Binance fell by 300K ETH, reducing centralized sell pressure and boosting bullish sentiment.
- 81% of holders sit in profit, with key wallet clusters near $2,665, increasing the odds of profit-taking or breakout.
Ethereum [ETH] reserves on Binance have dropped sharply, falling from 4.1 million ETH to 3.9 million ETH since mid-April.
This 300,000 ETH reduction signals increased investor confidence in long-term holding and decentralized protocols.
Source: CryptoQuant
As a result, centralized sell-side pressure continues weakening. At press time, ETH changed hands at $2,605.85, up 2.77% in 24 hours.
With fewer coins available for immediate sale, bulls may gain control. Of course, this supply dynamic could tilt the scales in favor of bulls, especially if withdrawals persist.
ETH’s total Exchange Reserves stood at $18.9 million, marking a 0.78% daily dip. Though the drop appears minimal, it highlights a cautious stance among investors.
Many prefer holding ETH off centralized platforms. This aligns with broader accumulation trends seen across major wallets. Therefore, the decrease in reserve value suggests reduced selling appetite.
Source: CryptoQuant
Can ETH clear $2,665 amid rising liquidations?
The Liquidation Heatmap revealed thick liquidation zones between $2,600 and $2,665, forming a strong resistance cluster. This area could spark volatility as leveraged positions get tested.
However, Ethereum’s steady advance toward these zones shows growing buyer confidence. If ETH breaks above $2,665, cascading short liquidations could boost the rally further.
Even so, traders should watch closely—price may stall or briefly consolidate before continuing its climb.
Source: CoinGlass
Ethereum gas usage dropped to 14.09 billion, marking a significant decline from previous highs. This reduction may reflect improved fee efficiency or a temporary dip in high-volume activity.
Having said that, it doesn’t imply weakening fundamentals.
Lower gas costs often enable more affordable user participation across DeFi and NFT platforms. Therefore, this drop may support broader network engagement rather than hinder it.
Factors still supporting ETH’s strength
At the time of writing, Ethereum registered 555,880 Daily Active Addresses and 1.42 million transactions.
These metrics highlight strong user engagement despite changing fee dynamics. Therefore, Ethereum’s underlying utility remains intact.
Consistent activity reflects continued trust in the network’s capabilities across different use cases. This user-driven strength, combined with declining exchange reserves, offers structural support for price growth.
Source: Santiment
Additionally, 81.07% of holders were in profit. The largest concentration sat between $2,460 and $2,665—right where ETH faces resistance.
However, ETH remains above key support, and on-chain signals remain bullish. If price breaks above $2,665 with volume, short positions may unwind.
This could trigger a sharp rally.
Therefore, traders should monitor this zone closely. A confirmed breakout could mark the beginning of Ethereum’s next impulsive move toward higher levels not seen in recent months.
Is a breakout imminent?
Ethereum’s fundamentals remain strong, supported by reduced reserves, growing user activity, and high profitability among holders.
Resistance around $2,665 remains the key barrier.
However, if bulls push past this level with conviction, a breakout could follow. On-chain data favors upside continuation, but momentum must hold. Traders should watch this critical zone closely.
A successful breakout could confirm the start of Ethereum’s next rally phase.
