As approximately 10% of Ethereum (ETH) held by Binance has been rapidly withdrawn, market participants are gaining momentum in analyzing this as a bullish signal. Amid interpretations that the decentralized ecosystem is expanding and long-term holding demand is simultaneously increasing, this is directly linked to price rise expectations for Ethereum.
Binance recently disclosed its Proof of Reserves as of August 1st, revealing that its Ethereum holdings have decreased by approximately 496,984 ETH compared to a month ago. At current market rates, this amounts to about $1.85 billion (approximately 2.57 trillion won). The total ETH held by Binance is around 4.55 million, effectively meaning about 10% has been withdrawn.
This outflow is in contrast to other major assets like Bitcoin (BTC) or Tether (USDT). Bitcoin increased by about 17,167 BTC (+2.99%) during the same period, and USDT showed an increase of over $258 million (approximately 358.6 billion won). Binance's own token, BNB, only showed a minimal increase of 0.38%.
Market analysts propose two possibilities for this massive Ethereum outflow. One is movement to a separate cold wallet, and the other is utilization through DeFi services. They unanimously agree that the price support effect due to reduced circulation is evident. In fact, Ethereum's price has recently broken through its short-term resistance line, surpassing $3,700 (approximately 5.13 million won).
Ethereum's technical indicators are currently positive. The 26-day exponential moving average (EMA) is playing a strong support role, and the Relative Strength Index (RSI) is maintaining around 66, indicating it has not entered an overheated phase. This is interpreted as a signal of additional upside potential, stimulating short-term buying sentiment.
Particularly, as large-scale coin movement is likely for long-term holding (HODL) or staking purposes, the reduction in Ethereum's circulation speed and supply could induce a larger mid-to-long-term upward trend. Many on-chain analysts diagnose that "under such a structural supply reduction environment, if new capital inflows follow, Ethereum has the potential to quickly approach new highs".
Binance's Ethereum holdings reduction is delivering a signal beyond simple withdrawals. There's an atmosphere of interpreting this as a mid-to-long-term rise strategy, where demand scarcity can act as a price driver. At a point where the DeFi market is recovering and Ethereum's tokenomics are again gaining attention, future trends will be closely associated with additional investor purchases.
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