[Analysis] "Ethereum Holdings on Binance Exchange Are Increasing"

The amount of Ethereum (ETH) circulating on the world’s largest cryptocurrency exchange, Binance, is showing an increasing trend.

On the 6th (KST), Borisbest, a CryptoQuant contributor, shared in a report, "Binance currently holds over 4% of the total circulating supply of Ethereum," adding, "This is the highest level since May 2023."

The increase in Ethereum held on exchanges suggests that many people are either considering or executing sales of Ethereum. The contributor explained, "An accumulation of Ethereum on exchanges can be interpreted as a sign that selling pressure may intensify during price drops," noting, "If selling begins, a larger price decline could occur."

However, the contributor added that this indicator does not necessarily mean Ethereum prices will fall. He further commented, "An increase in circulating Ethereum can also be interpreted as a movement expecting a price increase," and said, "If Ethereum's price does not drop significantly, this could indicate strong demand or strategic moves from large holders."

In fact, during the prior period when Ethereum on Binance was increasing, Ethereum temporarily fell from $1,900 to $1,600, but then surged sharply afterwards.

The contributor stated, "Binance plays a significant role in the market, so the increase in holdings may simply reflect growth in trading volume or user numbers," and added, "Given the price of Ethereum has not dropped, this suggests a certain level of price support." He went on to say, "To determine whether the current situation is a selling opportunity or preparation for a rise, ongoing monitoring of Ethereum holdings movements is required."