A key concern stems from the sharp rise in ETH reserves on Binance, now matching levels last observed before significant sell-offs. When exchange reserves increase, it often signals that traders are preparing to offload tokens, adding to sell pressure. Despite ETH managing to temporarily hold above $2,600, the surge in exchange-held tokens hints at mounting bearish sentiment.
This trend is further supported by the latest Netflow data. Over the past seven days, Ethereum saw negative Netflows totaling -248.83K ETH, with a 30-day figure of -60.9K ETH. While negative Netflows can sometimes reflect accumulation, the stagnant price action suggests these withdrawals likely followed earlier sell-offs, not fresh buying interest.
Open Interest Drop Signals Trader Caution
Market participants also appear hesitant to commit. Over the past 24 hours, Ethereum’s Open Interest dropped 8.99% to $18.14 billion, indicating that traders are pulling back from both long and short positions. This decline suggests a lack of conviction in either direction, which typically precedes a breakout or breakdown.
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Notably, Binance’s ETH/USDT Liquidation Heatmap shows heavy resistance between $2,700 and $2,830. These zones have repeatedly triggered liquidations during bullish attempts, causing sharp price reversals. Until Ethereum sees a decisive volume-driven breakout above these levels, bulls could remain trapped below this ceiling.
Outlook: Ethereum Faces Growing Downside Risk
Despite the calm price range, Ethereum’s market structure is signaling vulnerability. Rising exchange reserves, persistent outflows, falling Open Interest, and thick liquidation zones point to weakening bullish momentum. If ETH fails to decisively reclaim $2,700, the $2,480 support level could be tested next. For now, caution dominates as Ethereum consolidates in a tightening range with limited upside momentum.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
