ETH is picking up pace on Binance, with spot inflows increasing this time. The token recorded the highest net inflow to a centralized exchange since 2023.
ETH is returning to Binance as whale deposits are pushing up balances. Increased exchange flows may indicate increased interest in trading, taking positions in derivatives markets, or holding reserves for future sales.
Inflows into ETH exchanges have surged to their highest levels since spring 2023, potentially signaling a shift in the market. Exchange reserves remain near record lows. |Source: Cryptocurrency
Binance has seen the largest ETH inflow since April 2023, marking a significant spike after several days of mostly balanced flows.
Exchange net flows are a short-term indicator of sentiment and can change quickly. However, large moves can signal a turning point in the market. As of December 5th, 162,084 ETH had moved as inflows to Binance surged, with ETH just above $3,000.
Large-scale currency inflows could signal changes in the ETH market
Large forex inflows often signal a bearish turn for ETH. However, ETH sentiment based on the Fear and Greed index remains neutral. Binance remains the most liquid exchange and also invites riskier positions, so Binance is usually the preferred trading destination. higher leverage.
The currency inflows could shake up the market, as they equal most of the daily whale purchases. It remains unclear whether all deposits will be used for sales or for other tasks such as staking on Binance’s Liquid Staking feature.
Nevertheless, analysts are also monitoring the depth of Binance’s order book to determine if the sale will cause further decline in ETH price.
Overall, ETH foreign exchange reserves remain near historic lows. Binance’s reserves have increased slightly over the last month, up to 3.88 million ETH. Since ETH relies primarily on internal trading, exchange flows could be part of strategic whale sales. Whales are constantly repositioning to achieve a lower average ETH price.
ETH open interest increases by several inches
ETH open interest is back to $17.62 billion, with more than 70% of traders going long. ETH is still somewhat aggressively shorted on HyperLiquid, with 41% in short positions.
On Binance, ETH has accumulated the majority of open positions at just over $3,000, with short positions up to $3,200 accounting for the largest share of liquidity.
ETH bulls are gearing up for a breakout as the network remains a key component of decentralized finance. Over the past year, ETH has increased its locked value by around 14%, still outperforming all other networks. In addition to offering holders a large amount of liquidity staking, Ethereum remains the most liquid source of financing.
As such, ETH is unlikely to be sold in a panic as whales hold on to the token due to its utility and passive income potential. ETH has also been trending around 0.034BTC, and recently there have been growing expectations that it will recover to an even higher range.
