Ethereum's momentum is showing signs of cooling following a strong rebound in the second quarter of 2025.
Binance now holds over 4% of Ethereum's total circulating supply, raising concerns of increased selling pressure as historically seen during similar spikes in exchange reserves.
Some analysts interpret the rise in Binance's ETH holdings as a potential precursor to volatility, while others view it as strategic accumulation ahead of a potential breakout.
Investors are closely monitoring Binance flows to determine whether the increased reserves signal a price crash or are part of a larger bullish setup, as Ethereum's price remains stable for now.