Ethereum Reserves Drop to 5-Month Low as Demand Rebounds

Ethereum

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  • Binance ETH reserves drop by 820,000 — lowest since May.
  • Corporate Ethereum holdings show signs of recovery.
  • ETH must hold above $4,000 to confirm bullish momentum.

Ethereum (ETH) is showing signs of a potential rebound as exchange reserves on Binance fall to their lowest level since May. According to data from CryptoQuant, ETH reserves on Binance dropped from 4.69 million in late August to just 3.87 million by October 23 — a decline of nearly 820,000 ETH.

This drop indicates that more investors are moving their assets off exchanges and into self-custody, a common signal of long-term confidence. The last time Binance’s ETH reserves were this low, Ethereum rallied sharply from around $3,800 to $4,800 in a matter of weeks.

ethereum
Source: CryptoQuant

Corporate Holdings May Be Turning a Corner

After months of steady decline, corporate Ethereum holdings are showing signs of stabilization. Analyst TedPillows noted that the downtrend in institutional ETH accumulation — which started in August — could be bottoming out.

This shift is important. When corporate treasuries begin adding ETH again, it often triggers renewed market momentum. Past accumulation phases from large holders have preceded major Ethereum rallies, suggesting that institutional conviction could once again act as a catalyst.

ETH Price Eyes $4,000 Resistance

At the time of writing, Ethereum trades near $3,986, up 0.82% in the past 24 hours. Technical indicators remain neutral: the RSI sits at 46.9, and trading volume is steady but moderate.

Also Read: Ethereum ETFs Face $127M Outflows Amid Daily Price Gains – Market Update

Recent price action shows ETH forming a gentle recovery curve after previous sell-offs. However, bulls need to sustain momentum above the key $4,000 resistance zone to confirm a breakout and shift market sentiment decisively upward.

The Bottom Line

With Binance reserves shrinking and institutional interest showing early signs of revival, Ethereum could be entering a pivotal phase. A confirmed push above $4,000 may mark the start of the next major leg higher for ETH — one fueled by tightening supply and returning corporate demand.

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.