Ethereum (ETH) reserves on Binance have plunged to approximately 16.2 million tokens — their lowest level since 2016 — even as the second-largest cryptocurrency by market value slides back below the $3,000 threshold amid renewed selling pressure across digital asset markets.
What Happened: Exchange Reserves Decline
The on-chain analytics firm Arab Chain reported that ETH holdings across centralized exchanges have reached their lowest point in nearly a decade, signaling a sustained withdrawal trend rather than a short-term repositioning event.
Data shows a similar pattern on Binance specifically. The exchange's ETH reserves dropped from roughly 4.168 million tokens at the start of 2026 to around 4.0 million currently.
Coins leaving exchanges typically indicate reduced immediate selling supply. Investors appear to be shifting toward cold storage or deploying assets in decentralized finance protocols.
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Why It Matters: Supply Dynamics Shift
Fewer tokens sitting on trading platforms can amplify price movements when demand returns, as less liquid supply remains available to absorb buying pressure.
ETH currently trades near $2,970, having failed to hold above $3,000 after an attempted recovery toward the $3,300–$3,400 resistance zone earlier this month.
The token remains below its 200-day moving average.
Support now sits in the $2,850–$2,900 range. Bulls must reclaim $3,000 to shift momentum back in their favor.
A sustained move above $3,200 would be needed to shift momentum. And this will potentially open a path toward $3,400 resistance zone.
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