Ethereum’s price recently slipped below the $2,150 mark following a persistent buildup of coins deposited on Binance, which created mounting selling pressure. Data from CryptoQuant revealed that throughout the first half of May, Binance experienced repeated net inflows of Ethereum, indicating a steady transfer of ETH from external wallets into exchange accounts primed for quick sale.
This pattern of inflows reflects a growing supply on Binance rather than immediate selling. Users moved Ethereum from cold storage or personal wallets to the exchange, positioning it for sale once market conditions became favorable or stop-loss triggers activated. The timing suggests that the price slide was a response to the market beginning to digest this accumulated inventory rather than a sudden influx of sales.
Ethereum’s price hovered near $2,400 for much of early May, but as the deposited supply accumulated, demand failed to absorb it without the price retreating. This imbalance pushed Ethereum down by roughly $300, stabilizing near the current level around $2,100. The decrease represents the market’s effort to rebalance supply and demand amid excess tokens awaiting buyers on Binance.
Recent data points to a cooling of deposit activity on Binance, signaling that the consistent arrival of new Ethereum supply may be slowing. However, the accumulated coins remain on the exchange, still vulnerable to selling pressure. For the price to recover sustainably, genuine accumulation by buyers must outpace the available supply waiting to be sold.