Ethereum recorded a significant $960 million net inflow to binance in december, breaking a five-month negative streak. this event has conflicting interpretations: it could be a bearish signal indicating preparation for asset offloading, or a bullish one suggesting renewed buyer interest and accumulation, or capital injection for active trading due to expected high volatility.
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The substantial exchange inflows present a dual interpretation. while historically seen as bearish due to potential selling pressure, analysts also suggest it could indicate a revival in buyer interest for accumulation at lower prices or capital being moved for active trading to capitalize on anticipated high volatility, leading to an uncertain immediate directional bias.
The significant shift in investor behavior, whether for long-term accumulation, repositioning for a potential long-term bear market, or heightened trading activity, suggests sustained implications rather than a fleeting event. a 'new phase' of market activity is indicated.
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Recent on-chain data revealed a major shift in Ethereum net flow to the Binance exchange during December 2024. This eye-catching event could imply several market developments, especially following the asset’s bearish struggles in Q4 2025. Meanwhile, Ethereum has notably opened 2026 on a positive note, climbing to above $3,100 for the first time since mid-December. Related Reading Ethereum Finds Its Footing Again, But Here’s Why Bulls Still Have Work To Do 9 hours ago Ethereum Sees $960M Inflows As Investor Sentiment Shifts In a QuickTake post on December 3, the analysis page CryptoOnChain reports an important change in Ethereum investors’ activity. Notably, the Ethereum net inflow in December reached $960 million on Binance, the world’s largest exchange by trading volume. The development is particularly important and compelling because it represents an impressive shift from the negative inflow record that had existed since July 2025. For the majority of H2 2025, investors had chosen to continually withdraw more ETH than deposit, likely in favour of long-term accumulation, i.e., bullish, or to divert potential selling pressure elsewhere. However, the figures recorded in December suggest an abrupt change in investors’ behavior, which bears multiple possible implications for the market. Source: CryptoQuant Generally, increased exchange inflows are considered a bearish signal interpreted as market participants’ preparation for a potential asset offload. Considering ETH price struggles in Q4 2025, this recent spike in net inflows could be indicative of a potential repositioning for an anticipated long-term bear market. However, CryptoOnChain highlights some possible positive effects of this event. The huge inflows recorded in December could also reflect a revival in buyer interest, suggesting renewed demand for Ethereum as investors prepare to accumulate at lower price levels. In addition, the heavy net inflows could also represent a new capital injection in the Ethereum market that has been moved to exchanges for active trading. In line with this thought, CryptoOnChain also states that traders may be moving capital to exchanges to capitalize on trading opportunities driven by an expected high volatility. In conclusion, the analysts emphasize that the sudden reversal leading to the massive inflows in December is a vital market signal potentially indicating a new phase of accumulation or heightened trading activity. Related Reading Weekend Trap? Bitcoin Enters Choppy Range As Critical Trend Line Holds Below 12 hours ago Ethereum Market Overview At the time of writing, Ethereum trades at $3,121 following a slight decline of 0.11% in the past 24 hours. Meanwhile, daily trading volume is down by 52.68% and valued at $11.79 billion. Despite recent gains, the prominent altcoin remains 37.15% below its all-time high, recorded in August 2021, following the extended market correction of Q4 2022. ETH trading at $3,134 on the daily chart | Source: ETHUSDT chart on Tradingview.com Featured image from Flickr, chart from Tradingview