Ethereum has recently slipped below the critical $2,150 mark, succumbing to renewed selling pressure amidst a cloud of uncertainty that has overshadowed weeks of cautious recovery. As the cryptocurrency grapples with this downturn, insights from exchange netflow data, particularly from Binance, have shed light on the mechanics driving this weakness and what it might take to reverse the trend.
Throughout the first half of May, Binance recorded consistent positive netflow readings, indicating a significant influx of ETH deposits onto the exchange. This pattern was not merely a singular event but rather a sustained series of deposits, suggesting that large amounts of ETH were being moved from cold storage or external wallets to the exchange, where they could be sold swiftly. Each positive netflow reading reflects potential selling pressure, as these coins are now positioned for immediate market entry when holders choose to sell or are prompted by stop-loss triggers.
The influx of supply on Binance did not vanish with the price drop; it simply accumulated, waiting for the right moment to be sold. As per recent analyses, Ethereum’s decline below the $2,150 threshold may signify the market beginning to process this inventory that had built up on Binance during the initial weeks of May.
The Supply Arrived, The Price Followed It Down: Now the Market Needs Time
Data indicates a direct correlation between the inflow patterns and subsequent price responses. As large ETH deposits continued to populate Binance, the price, which had previously hovered around $2,400, reacted negatively, dropping approximately $300 to its current levels near $2,100. The supply influx encountered insufficient demand to sustain the previous price levels, leading the market to adjust downwards until a temporary equilibrium was found between buyers and sellers.
However, there’s a silver lining in the recent data. The pressure of ETH deposits to Binance has diminished over the past few days, indicating that the earlier pattern of significant inflows has subsided. This reduction in deposit pressure suggests that the immediate supply that contributed to the recent price decline may have eased.
Despite this positive shift, the situation remains complex. The supply that entered the market during the inflow period is still available for sale, and it will take genuine buyer interest to absorb this inventory before Ethereum can find a stable equilibrium conducive to recovery. Currently, the market is testing whether sufficient accumulation is present at the $2,100 level. The deposit data indicates reduced selling pressure, but only price action will confirm whether demand has materialized.
Ethereum Struggles Below Major Weekly Resistance As Long-Term Trend Weakens
As Ethereum trades around $2,110 on the weekly chart, it finds itself struggling to gain momentum above a critical resistance zone between $2,300 and $2,450. This resistance area now reflects a market caught between hopes for long-term recovery and ongoing distribution pressure from larger market players.
The current market structure shows that Ethereum has lost bullish momentum after failing to reclaim the $4,000-$4,500 range in late 2025. It has since entered a prolonged corrective phase characterized by lower highs and repeated failures to break above major moving averages. Although the rebound from March provided a brief surge in sentiment, the recovery stalled as the price approached the critical moving averages near the $2,400-$3,000 region.
Importantly, Ethereum is now trading below the weekly 200 moving average again, signaling a marked weakening in its overall market structure compared to previous recovery phases. High volume during this recent decline suggests that selling pressure remains active, rather than having fully subsided.
The $2,000-$2,100 zone now stands as a critical support area for bullish traders. A break below this level could expose Ethereum to further declines, possibly heading towards a broader demand zone between $1,700 and $1,800, where buyers previously stepped in aggressively after earlier capitulation events.
