Ethereum has extended its recovery, trading around $2,700–$2,720 on Sept 21 after reclaiming the $2,600 level earlier in the week.

CryptoQuant data shows that withdrawal activity on Binance remains notably elevated. Recent data indicates that the monthly average of ETH withdrawal transactions on Binance has climbed to levels not seen since 2023, roughly double the pace recorded at the start of the year. This sustained outflow activity has coincided with the strong price recovery from the mid-$2,300–$2,400 range.

Elevated withdrawals typically reduce the amount of ETH immediately available for sale on the exchange. When this occurs during a clear upward move, it can reflect accumulation or longer-term positioning as holders move coins off-platform. At the same time, earlier sessions in mid-September also recorded meaningful net outflows from Binance, including multi-hundred-million-dollar readings, adding to the broader pattern of ETH leaving the largest exchange.

The current setup creates a constructive on-chain backdrop: price is advancing while liquid ETH supply on Binance is being drawn down through elevated withdrawal activity. For the move to remain healthy, continued net outflows or stable-to-declining reserves would support the idea that demand is absorbing available supply rather than being met by fresh deposits.

Traders should monitor whether Binance ETH netflows remain negative and whether reserve levels continue to trend lower as price tests higher resistance zones.

Written by theophiluspep