Binance’s Dominance: The Real Reason Behind Ethereum’s Price Weakness?

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<a href="https://jpyeur.com/eth-usd/">Ethereum</a> Weakness Traces Back To One Exchange. Analyst Identifies The Cause

Ethereum is having trouble staying above $2,150, as selling and general market nervousness are hindering its recovery. The price has fallen significantly from its low point in February. Analyst MorenoDV has studied trading patterns to pinpoint the source of this selling pressure and what’s happening now as a result.

A key finding highlights a significant concentration of Ethereum trading activity. On May 10th, when 250,000 ETH entered various cryptocurrency exchanges, Binance handled a remarkable 225,000 ETH – a full 90% of the total inflow for that day, all on one platform. According to MorenoDV, this isn’t just a random occurrence; it suggests a fundamental shift where Binance increasingly dictates what happens with Ethereum. The exchange has become so central to how ETH is traded that its actions now largely determine the overall market’s behavior.

That initial finding would have been noteworthy on its own. However, my analysis also revealed a new trend—a split in the data starting around May 10th—which alters how we should understand the recent price drops and what the Binance data now suggests about future movements.

The divergence is where the more important story lives.

Binance Drove the Market Drop

MorenoDV has spotted a significant change in Binance’s activity. Unlike the situation on May 10th when funds were flowing in, Binance is now seeing a net outflow of around 12,000 ETH. While other exchanges still show a small overall inflow of about 20,000 ETH, Binance – which initially led the recent price drop – is now experiencing funds leaving the platform.

The unusual pattern itself is the key indicator. The price drop on May 10th wasn’t caused by a general increase in buying across all exchanges. Instead, one exchange, Binance, took in 90% of all trading volume that day – a massive concentration that makes the event specific to Binance, rather than a broader market issue.

MorenoDV’s analysis of significant Binance deposits suggests four main reasons why they happen: someone might be preparing to sell a large amount of cryptocurrency, protecting their existing investments, being forced to adjust their holdings due to margin calls or collateral needs, or a large investor gradually selling off their assets. Understanding the reason behind these deposits is important because it helps predict how long the resulting price drops will last and how quickly the market will bounce back.

The shift to net outflows doesn’t explain what caused the large concentration of activity on May 10th, but it does show that things have changed. This particular exchange, which previously absorbed 225,000 ETH as the price fell, is now releasing ETH back into the market instead of continuing to buy. Given Ethereum’s struggle to stay above $2,150, this change in behavior from this key exchange is the most important factor to monitor.

Ethereum Breaks Below Key Support

Ethereum is currently trading around $2,115. It dropped below a key support level of $2,150, which hurts its recent recovery from April. The price is now below both its 100-day and 200-day moving averages, suggesting the overall trend is still downward, even after attempts to bounce back.

After the dip down to around $1,800 in February, Ethereum started to bounce back, and for a while it looked really promising as we headed towards the $2,300-$2,400 range. But every time we tried to break through that resistance, we just couldn’t quite manage it. Eventually, the buying pressure died down and the price started to fall again.

As I’ve been analyzing the recent price drop, something stood out to me. We’re seeing a clear increase in selling pressure right around the recent highs. The trading volume increased significantly when the price was rejected near $2,350, and stayed high as Ethereum fell, which suggests that people were actively selling their holdings, not just waiting for a temporary pause. This observation is supported by data from Binance, which shows a large amount of Ethereum being deposited onto the exchange right before the price started to fall more quickly.

Ethereum is currently nearing a key support level between $2,050 and $2,100. If the price stays above this range, it could signal a period of stability after the recent price drop. However, if the price falls below $2,050-$2,100, it could drop further down to around $1,900-$2,000, a price area where buyers strongly stepped in after the price decline in February.

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2026-05-20 02:27