Ethereum (ETH) may face a "supply shock" as exchange reserves dwindle, despite trading nearly 50% below its $4,878 all-time high. According to a CryptoQuant post, ETH reserves on Binance fell from nearly 4.2 million to 3.9 million between April 14 and May 14.
This 300,000 ETH drop in one month suggests decreased selling pressure and potential price increases if demand remains constant. On-chain analyst Amr Taha suggests investors are moving ETH to cold wallets, DeFi protocols, or institutional activities like OTC deals and staking.
ETH whales are not currently taking profits, indicating a possible rally. Analyst Ted Pillows predicts ETH could reach $12,000 this year, following a Wyckoff Accumulation pattern. The recent Pectra upgrade is expected to enhance Ethereum's performance and security; ETH is trading at $2,541, down 2.2% in the last 24 hours.
BlitzzTrading advises monitoring whale activity for potential corrections as ETH enters overbought territory. Pillows believes ETH could reclaim the $4,000 level by Q3 2025 if current momentum holds.
The decline of 300,000 ETH in Binance's reserves from April 14 to May 14 indicates a shift towards long-term holding and institutional accumulation. Traders should closely observe this trend and its interaction with overall market demand.
This article is based on our author's analysis of materials taken from CryptoQuant.