Ethereum’s on-chain and exchange activity accelerated in early May even as the asset’s price held in a tight range, according to analysis shared by the pseudonymous on-chain researcher Darkfost. Multiple large ETH inflow spikes to Binance and a rise in the exchange’s ETH reserves may be helping to cap upside momentum.
Price Holds Range as Activity Picks Up
Darkfost noted a resurgence in Ethereum network activity alongside range-bound price action. Since the start of the month, ETH has largely traded between $2,250 and $2,450, with attempts at upside repeatedly fading.
As of press time, ETH changes hands around $2,329, up about 0.6% over the past 24 hours.
Large ETH Inflows to Binance in Early May
Binance, the world’s largest crypto exchange by trading volume, recorded several notable hourly spikes in ETH deposits since the beginning of May. The largest reported transfers included:
- May 6: Approximately 216,152 ETH (about $511 million) sent to Binance.
- May 8: Around 98,552 ETH (about $224 million) deposited.
- May 9: Multiple transfers totaling roughly $288 million.
According to the analyst, many of these inflows coincided with corrective price moves, suggesting reactive selling into weakness rather than methodical profit-taking.
Rising Binance Reserves Signal Ongoing Consolidation
Alongside heightened inflows, Binance’s ETH reserves have climbed to roughly 3.62 million ETH, representing about 24.6% of the total ETH held across exchanges, Darkfost reported. Growing exchange reserves are often viewed as a neutral-to-bearish indicator because more supply is readily available to sell, while declining reserves can indicate accumulation in private wallets.
The rise in Binance-held ETH may be one factor keeping Ethereum confined to consolidation despite periodic rallies. The analyst added that short-term positioning among larger holders appears unstable, limiting ETH’s attempts to establish higher price levels.
Outlook
For a more constructive backdrop, reserve growth would likely need to slow while price strength improves. Until then, ETH’s elevated exchange supply and recurring inflow spikes point to continued range-bound trading.