Ethereum Records Largest Influx into Binance Since 2023: A Cautionary Signal?

Ethereum has been trading in a narrow range between $3,000 and $3,200, experiencing some uncertainty as the market seeks direction. Although there have been attempts to push the price higher, momentum has slowed, and many analysts are concerned that ETH may be heading into a deeper bearish trend. A notable development, however, is a significant spike in Ethereum’s net inflow to Binance on December 5, 2025, which raises questions about investor intentions amidst market hesitations.

Key Takeaways

Ethereum has stabilized between $3,000 and $3,200, but bearish trends are being noted.
A significant increase in net inflow to Binance on December 5, 2025, suggests that many investors are moving ETH potentially to sell.
Currently, ETH is above key support levels, indicating a critical decision-making period ahead.
Traders should be cautious as patterns indicate potential short-term volatility.

Ethereum Sees Largest Binance Inflow Since 2023 – Warning Sign?

Significant Spike in Binance Inflow Creates Concerns for Ethereum

On December 5, 2025, data from CryptoQuant revealed a notable increase in Ethereum's exchange activity, with inflows to Binance reaching 162,084 ETH, while the price lingered around $3,021. This marked the largest daily net influx since May 2023, which is significant not just for its size but for what it suggests: an uptick in the movement of ETH from self-custody wallets to exchanges.

Ethereum Exchange Netflow on Binance | Source: CryptoQuant

Historically, such large positive netflows can point to bearish tendencies, indicating that holders might be preparing to offload their assets. When deposits significantly surpass withdrawals, it often leads to increased selling pressure, especially in a market that appears delicate. A net influx of this scale can create a temporary supply shock; if even a fraction of this ETH is sold on the market, it could lead to increased volatility or downward price adjustments.

Thus, traders should monitor Binance's handling of this increased liquidity closely. Observing order book depth, reactions in open interest, and subsequent inflow trends will clarify whether this significant inflow is part of a larger change in investor behavior or just a brief anomaly. In a fragile market, even a single inflow event can greatly influence the market sentiment in the days to follow.

Ethereum Attempts to Find Stability

Analysis of Ethereum’s daily chart indicates that the market is trying to stabilize but is hindered by notable structural resistance. Following a dip below $2,800 in late November, ETH has managed to reclaim levels around $3,100, where it has been consolidating recently. This behavior represents a pause in the previous downward trend; however, it lacks the robust momentum often characteristic of bullish reversals.

ETH consolidates between key levels | Source: ETHUSDT chart on TradingView

The 50-day and 100-day moving averages are still positioned above the current price, creating a clear resistance zone between $3,250 and $3,500. These declining moving averages indicate that the overarching trend still leans toward sellers, and ETH will require a decisive breakout beyond them to positively shift market sentiment. The 200-day moving average, positioned even higher, reinforces that Ethereum is not operating within its long-term trend.

Volume has also declined during this rebound, suggesting that buyers are hesitant to enter at current price levels. The recent rise in exchange netflows adds another layer of caution, implying the possibility of heightened selling pressure in the near term.

While ETH shows early signs of stabilization, the route ahead requires more robust buying conviction. Until the price surmounts the cluster of moving averages, this recovery remains fragile and susceptible to renewed downward movements.

Featured image from ChatGPT, chart from TradingView.com