Jan 1, 2026
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Ethereum Liquidity Surges on Binance with 8.5 Million ETH Inflows in December
Ethereum Market Overview:
- Ethereum is struggling to break the $3,000 resistance level, showing weak price action and vulnerability to downside pressure.
- Market sentiment remains bearish, with fading momentum indicators and subdued risk appetite among investors.
On-Chain Data and Liquidity Insights:
- According to CryptoQuant, Ethereum reserves on Binance surged to 4.17 million ETH in December.
- The month saw inflows of nearly 8.5 million ETH, a major event since 2023, indicating increased trading activity or potential selling pressure rather than long-term accumulation.
- Higher exchange balances typically increase ETH's tradable supply, affecting short- to medium-term supply-demand dynamics.
- Increased exchange liquidity often precedes volatility, especially when prices struggle to regain key levels.
Market Technical Analysis:
- Ethereum's price range is compressed between $2,900 and $3,100, indicating indecision and lack of conviction among traders.
- Technical indicators show ETH capped below its 50, 100, and 200-period moving averages, sustaining a broader bearish trend.
- Trading activity has decreased, reflecting reduced participation and market apathy.
- A breakout above $3,100 is necessary for a bullish shift; otherwise, ETH risks continued downside if market sentiment worsens.
Ethereum's current state suggests potential for increased volatility, with significant market movements likely depending on broader market trends and investor behavior.