Ethereum has given back its September gains as a broader altcoin correction wipes out more than $38 billion of its market value. Yet Binance's ETH reserves have dropped to a six-month low, as record withdrawals suggest some holders are moving coins off the exchange rather than selling.
Ethereum has erased its entire September rally, falling back to roughly the price level it held a month ago. The pullback comes as a broader market correction has erased more than $110 billion from the total market capitalization of altcoins over the past three days. ETH itself has dropped 10% during this period, wiping more than $38 billion off its market capitalization.
Its reserves on Binance, however, tell a different story: they have fallen to the lowest level in six months.
Binance reserves hit six-month low
CryptoQuant data shows that some investors keep moving their ETH off trading platforms. The asset's reserves on Binance fell from 3.57 million to 3.47 million ETH over the period. Back in August, the exchange held around 3.92 million ETH, meaning reserves have dropped nearly 11.5% since then.
Withdrawals have also surged. On October 6, Binance recorded more than 320,000 ETH withdrawal transactions in a single day, a record high. The trend indicates that investors may be looking to hold their crypto asset in private wallets for longer rather than keeping it on an exchange. Some may also be putting their holdings to work while waiting for a better opportunity to sell.
Analysts eye a possible rebound
Michaël van de Poppe believes Ethereum's failed attempt to break higher could still present an opportunity for investors and serve as a potentially attractive entry point. BATMAN also said the altcoin may be approaching a point where buyers step back in.
ETH appeared to be testing the lower trendline of a rising channel, while its RSI has fallen to around 23, a level considered deeply oversold. If the trendline holds, BATMAN said there is a possible rebound toward $2,700, with $3,000 next on the radar.
Ted Pillows, however, flagged that the altcoin is sitting right at its 100-week exponential moving average, a major level to watch. He warned that a weekly close below this zone could send ETH's price below $2,400.
Source: CryptoPotato
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