- Ethereum rising reserves on Binance and large net inflows signal growing sell-side pressure despite recent price stability.
- If ETH fails to break above the key $2,700 resistance, technical indicators warn of a potential sharp decline of up to 60% toward $1,075.
Ethereum Price Faces Hidden Pressure Despite Recent Rally
Ethereum (ETH) has surged nearly 100% since its April low of around $1,385. However, while the price remains stable above $2,500, several key on-chain and technical indicators are painting a far more ominous picture. Recent data suggests that major players may be preparing for a selloff, using short-term bullish momentum as an opportunity to exit the market.
Binance Reserves and Netflows Signal Sell-Side Intentions
According to CryptoQuant data, Ethereum reserves on Binance have climbed sharply—rising from 3.78 million to over 4.21 million ETH since December, hitting a seven-month high. This increase signals a potential wave of sell-side activity, as whales transfer ETH to exchanges to cash in on local highs rather than expecting a breakout.
Supporting this bearish outlook, Binance recorded net inflows of over 346,000 ETH in just three sessions—coinciding with ETH failed attempt to breach the $2,700 resistance. These large deposits, without corresponding price gains, suggest whales are distributing, not accumulating.
Exchange Supply Ratio and Taker Data Reinforce the Bearish Case
The Exchange Supply Ratio, which tracks the percentage of ETH held on Binance, has also risen alongside price—another classic distribution pattern. At the same time, the Taker Buy/Sell Ratio spiked above 1.0, indicating aggressive market buying. Yet the lack of price momentum implies that sellers are absorbing this demand to exit their positions quietly.
This “absorption” suggests a bearish divergence, where bullish activity is being neutralized by hidden sell pressure.
Technicals Warn of Breakdown if $2,700 Is Not Reclaimed
Despite an inverse head-and-shoulders pattern hinting at a potential breakout to $4,150, Ethereum continues to face rejection at $2,700. RSI is cooling from overbought levels, and volume remains tepid—both red flags for bulls.
Worse, the weekly chart shows ETH stalling near major resistance at $2,530–$2,575. A failure to break this zone could lead to a dramatic drop toward $1,975, or even as low as $1,075—marking a potential 60% crash from current levels.
