Ethereum is testing key demand levels after falling below the $4,600 mark. This is a breakdown of increased sales pressure across the market. The Bulls, who have recently driven ETH to a new high, have lost control as momentum fades away, and fear is coming back to emotions. Traders are closely watching whether Ethereum can hold its support zone or whether deeper retraces are on the horizon.
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But under this volatility, on-chain data tells a different story. Top analyst DarkFost shared fresh insights showing that Binance’s Ethereum reserves fell by more than 10% within a week. The exchange balance has fallen from ETH of nearly 5 million to just under 4.5 million, indicating a sharp decline in demand. Usually, a decline in bookings on major exchanges means investors are moving their ETH to private wallets or debt protocols.
While speculation and short-term fear may be driving the current decline in reserves, the fundamentals behind Ethereum remain solid. The strong demand, coupled with consistent outflows from exchanges, indicates that large players are positioned for the long term. For many, this difference between price action and fundamentals could shape Ethereum’s next critical move.
Ethereum only reduces vinance
Within a week, Ethereum recorded a sharp decline in Binance reservations, falling by more than 10%. Data shared by analyst DarkFost shows that the amount of ETH available on the exchange has dropped from 4,975,000 on August 23rd to just 4,478,000 today. This ETH cut of nearly half a million people highlights a strong change in market dynamics, indicating investors are actively withdrawing their holdings from the platform.
If Exchange Reserves slows at this rate, the impact is clear. Users have chosen to move their assets to self-reliance or deploy them to decentralized finance protocols to earn yields. Both actions are widely regarded as bullish signals as they reduce the immediate supply of ETH that can be used for trading and selling in centralized exchanges. This trend often suggests stronger beliefs among holders and prefer long-term accumulation rather than short-term speculation.
Although internal transfers within the binance may have contributed to the overall decline, the consistent pace of outflow over several days suggests that authentic market demand is playing around with. The reserve drop comes at a time when Ethereum’s volatility grows, reinforcing the narrative that continues to accumulate large investors, even when price action remains uninterrupted.
Ultimately, the reduction in Binance’s ETH reserve highlights the fundamental strength of Ethereum’s foundations. Despite fears of sales pressure, data suggests demand is solid, and investors position what many expect to see as the next stage in Ethereum rally.
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Bull loses support as a seller’s pressure market structure
Ethereum has traded nearly $4,338 after falling below the $4,400 level, indicating an increase in sales pressure in the short term. The four-hour chart highlights a change in momentum, with ETH currently trading under the 50-day ($4,554) and 100-day ($4,499) moving average. The failure suggests that the bear has gained the advantage after weeks of volatility.
For now, ETH is $4,167 above its 200-day moving average. This serves as the final major line of defense in a wider upward trend. If the Bulls can stabilize prices here, Ethereum could try to rebound towards the $4,500-4,600 range, but momentum remains weak. The inability to maintain strength above $4,600 makes the ETH even more vulnerable to the downside.
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If sales pressure continues, a deeper setback to $4,200 cannot be ruled out. This level is consistent with previous demand zones and is consistent with the 200-day moving average, making it a key support area. Conversely, collecting $4,500 is the first signal that buyers are regaining control.
Dall-E special images, TradingView chart
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