Ethereum Reserves Drop 7.3% at Binance, Price Up 2.77%

Binance, one of the world's largest cryptocurrency exchanges, has experienced a significant reduction in its Ethereum reserves, with a drop of 300,000 ETH since mid-April. This decrease, from 4.1 million ETH to 3.9 million ETH, indicates a shift in investor sentiment towards long-term holding and decentralized protocols. The reduction in centralized sell-side pressure could potentially bolster bullish sentiment, as fewer coins are available for immediate sale, which may give bulls more control over the market.

At the time of reporting, Ethereum was trading at $2,605.85, reflecting a 2.77% increase over the past 24 hours. The total exchange reserves for ETH stood at $18.9 million, marking a 0.78% daily dip. This cautious stance among investors is further evidenced by the preference for holding ETH off centralized platforms, aligning with broader accumulation trends seen across major wallets. The decrease in reserve value suggests a reduced selling appetite, which could support price growth.

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. Traders should watch closely, as price may stall or briefly consolidate before continuing its climb.

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. Lower gas costs often enable more affordable user participation across DeFi and NFT platforms, which may support broader network engagement rather than hinder it.

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. 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.

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, potentially triggering a sharp rally. Traders should monitor this zone closely, as a confirmed breakout could mark the beginning of Ethereum’s next impulsive move toward higher levels not seen in recent months.

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, as a successful breakout could confirm the start of Ethereum’s next rally phase.