Ethereum (ETH) exchange deposits on Binance have surged to their highest level since August 2025, with unique deposit addresses jumping from roughly 360,000 to more than 450,000, as the token's price slides from its October peak near $4,900 to the $1,900 region.
What Happened: Deposit Addresses Spike
The CryptoQuant report tracked the ETH Binance User Deposit Address metric, which measures unique wallets sending Ethereum to the exchange.
The jump to 450,000 addresses represents a roughly 25% increase and the highest reading in six months.
Such deposit surges are widely viewed as a proxy for potential sell-side pressure. Assets moved to exchanges become readily available for liquidation, margin replenishment, or portfolio rebalancing.
Two on-chain interpretations stand out. The first points to retail capitulation, where smaller holders who rode out earlier declines are now exiting positions as the price breaches the $2,000 threshold.
The second involves derivatives positioning. Traders facing liquidation risk may be depositing ETH as collateral to maintain leveraged longs rather than selling outright.
On the technical side, Ethereum's weekly chart shows a clear loss of bullish structure following rejection near the $4,800–$5,000 zone. The 50-week moving average has rolled over into resistance, while price approaches the 200-week moving average, a level historically tied to major cyclical bottoms. Volume spikes during declines suggest distribution rather than accumulation.
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Why It Matters: Capitulation or Bottom
The deposit spike does not automatically mean a wave of selling is imminent. CryptoQuant noted that similar surges can reflect hedging activity or preparation for derivatives trading.
Still, the scale of the increase warrants attention.
Historically, extreme spikes in exchange deposit activity have appeared during late-stage corrective phases and sometimes preceded seller exhaustion.
Monitoring exchange outflows, spot volume absorption, and derivatives positioning in the coming days will be critical to determining whether this activity signals continued downside risk or the early formation of a local bottom. Until Ethereum can sustain closes above reclaimed resistance levels, risk remains tilted toward further consolidation or downside drift.
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