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▲ Ethereum (ETH), Decline/AI Generated Image
As Ethereum (ETH) prices accelerated into a bear market after breaking below the $2,150 mark, an abnormal concentration of volume to a specific large exchange has been revealed as the decisive cause that triggered this crash.
According to crypto media outlet Cointelegraph on May 20 (local time), CryptoQuant analyst MorenoDV revealed through recent on-chain data analysis that out of 250,000 ETH flowed into global cryptocurrency exchanges on May 10, a staggering 90%, or 225,000 ETH, simultaneously poured into Binance, the world's largest exchange, alone. MorenoDV diagnosed that such an extreme concentration of volume led to a simultaneous decline across the entire market, and that the structural direction of the Ethereum market is virtually dictated by the flow of Binance alone.
However, since the May 10 crash, a significant market divergence has begun to be observed in Binance's fund flows. Binance, which led the crash, recently shifted from a net inflow trend to a net outflow state, with approximately 12,000 ETH exiting, while the aggregated data from all exchanges still shows a moderate net inflow of approximately 20,000 ETH. This analysis suggests that while other parts of the market are still absorbing residual selling pressure, Binance, which spearheaded the downturn, has begun to show the opposite movement of buying dominance.
MorenoDV presented four possible reasons for such a massive amount of Ethereum being deposited to a specific exchange at once: large-scale sell-offs, hedge funding for existing positions, forced position readjustments due to margin and collateral requirements, or asset distribution by whale investors. The fact that Binance rapidly shifted to net outflow proves that the large entity that absorbed 225,000 ETH during the decline has stopped further accumulation and started returning funds to the market, which is expected to be the most crucial indicator for Ethereum, currently struggling to hold its support levels.
From a technical analysis perspective, Ethereum has given up its key support level of $2,150 and is currently trading precariously around $2,115, severely damaging the recovery structure built throughout April. On the daily chart, Ethereum's price has not only fallen below the 100-day moving average but is also trapped beneath the declining 200-day moving average, indicating that the overall long-term trend has been completely dominated by sellers. The rebound momentum that began from the capitulation low of $1,800 recorded in February failed to overcome the $2,300 to $2,400 resistance zone, leading to buying exhaustion and ultimately a collapse.
In particular, the recent decline is interpreted not as a simple correction but as a full-fledged liquidation phase, given the clear increase in supply pressure near local highs. Ethereum is now closely approaching the decisive support zone between $2,050 and $2,100, which will determine its future direction. Only by defending this stronghold can the recent sell-off be stabilized and a bottom established; however, if even this zone completely collapses, further declines to the long-term demand zone between $1,900 and $2,000, which was fiercely defended by buyers during the February crash, will be inevitable. A Bitcoinst article analyzed that Binance's change in direction could be Ethereum's only corner of hope in the bear market.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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