Binance’s Ethereum reserves fell by 430,000 ETH between August 25 and October 16, from 3.90 million to 3.47 million ETH—an 11% decline. At ETH’s latest charted price of $2,437.30, the reduction is worth approximately $1.05 billion.

The decline coincided with a broad retreat in spot trader activity. Between August 25 and October 15, ETH’s seven-day average spot volume across Binance and other centralized exchanges fell from $6.73 billion to $3.125 billion, a $3.605 billion decline, or 53.6%.

Outside Binance, average volume dropped $2.68 billion, from $4.98 billion to $2.30 billion (53.8%).

Binance recorded a $925 million decline, from $1.75 billion to $825 million (52.9%).

The absolute decline outside Binance was 2.9 times larger, though the percentage drops were similar.

Meanwhile, ETH fell roughly 15% from early-October levels to its mid-October low.

The liquidation heatmap shows $546 million in two marked short-liquidation clusters above the price, against $187 million in two marked long-liquidation clusters below.

The highlighted short-liquidation clusters are nearly three times larger than their long-side counterparts, suggesting a bearish bias among derivatives traders represented in the heatmap.

This substantial short exposure is consistent with bearish sentiment and expectations of further ETH price declines.

Together, declining ETH reserves on Binance, reduced spot trader activity across exchanges, and bearish sentiment among derivatives traders support Ethereum’s long-term bullish outlook.

Written by Amr Taha