Analysts at on-chain data platform CryptoQuant spotted a new Ethereum (ETH) buying trend by Binance traders, fueling expectations for a bullish price rebound in the mid-to-long term. Analyst Amr Taha noted that Ethereum purchases on Binance are rising, while sell pressure is easing. This shift is visible in the latest ETH reserve data, with the Binance reserve dropping to 3.3 million ETH, below the February lows. The reserve stood at 293.53 million ETH in February and 3.49 million ETH on Aug. 29, 2024, pointing to net withdrawals.
Similar to Ethereum, Bitcoin reserves also moved lower, declining from around 670,000 BTC recorded in early February to 636,000 BTC in early April. In contrast, stablecoin reserves on Binance are rising, suggesting an increase in selling pressure. On April 2, Tether (USDT) reserves stood at $38 billion, surging from the $35 billion recorded on March 12, and Circle (USDC) reserves increased from $4.6 billion in February to $6.6 billion on April 2.
Less Ethereum sitting on Binance could create a more supportive setup for price expansion, according to Amr Taha. When people move Ethereum from exchanges, it indicates they are not planning to sell immediately on the spot market, reducing the amount of coins available for quick selling and lowering immediate sell-side pressure. Growing stablecoin balances mean traders have more buying power on the exchange, as they can convert USDT and USDC into ETH when they want to buy. Currently, ETH is priced at $2,030, down 4.9% over the past 24 hours, with volume at $20.2 billion. Despite reduced retail investor interest, institutions are actively accumulating and staking ETH, with Bitmine staking 167,578 ETH (~$340 million) and Fidelity purchasing ETH worth over $140 million.
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