Ethereum Correction Deepens, But Withdrawals from Binance Show a Different Picture

After a significant rise in September, Ethereum has returned to the price level it was at a month earlier. This occurred amidst a broader market correction that wiped out over $110 billion from the total market capitalization of altcoins in just the last three days. During this period, ETH fell by 10%, leading to a reduction in its market cap by more than $38 billion.

Nevertheless, Ethereum reserves on Binance have dropped to their lowest level in six months. According to CryptoQuant, some investors continue to withdraw their ETH from trading platforms. The reserves of this cryptocurrency on Binance have decreased from 3.57 million to 3.47 million ETH. In August, the exchange had about 3.92 million ETH, indicating a reduction in reserves by almost 11.5% since then. Withdrawals have also increased: on October 6, Binance recorded more than 320,000 ETH withdrawal transactions in one day—a record figure. This trend suggests that investors may be looking to hold their crypto assets in private wallets longer rather than leaving them on the exchange.

Regarding technical aspects, Ethereum is testing the lower boundary of an ascending channel, and its relative strength index (RSI) has fallen to around 23, which is considered deeply oversold. If the trendline holds, according to BATMAN, a rebound to $2,700 is possible, with the next target potentially being $3,000. Ted Pillows, on the other hand, noted that the altcoin is right on its 100-week exponential moving average (EMA)—an important level to watch. He warned that a weekly close below this zone could create additional pressure on ETH and send its price below $2,400. Meanwhile, Michaël van de Poppe believes that Ethereum's unsuccessful attempt to break upwards could still offer investors an 'opportunity' and become a potentially attractive 'entry point'.