The Ethereum (ETH) price is under significant pressure, trading in the $1,890–$1,954 range after a brutal decline from its October 2025 peak near $4,900. On-chain data reveals a potentially ominous signal: unique ETH deposit addresses on the Binance exchange have surged from around 360,000 to over 450,000, marking the highest level since August 2025. This spike in deposits typically indicates increased selling pressure or margin defense from traders.
Technically, the trend remains firmly bearish. ETH/USD is trading below its 50, 100, and 200-day exponential moving averages, with the recent breakdown below the psychological $2,000 level accelerating the slide. While the Relative Strength Index (RSI) is near oversold territory, indicators like the MACD remain in bearish zones without convincing bullish divergences.
The surge in Binance deposits suggests two primary scenarios: retail capitulation, where long-term holders are finally selling to lock in losses, or margin top-ups, where derivatives traders are depositing more collateral to defend leveraged long positions against liquidation. Both scenarios increase the available supply of ETH on exchanges, which historically leads to heightened volatility.
Amidst this market stress, Ethereum co-founder Vitalik Buterin has publicly emphasized the vision for a more resilient and robust decentralized finance (DeFi) ecosystem. This advocacy is seen as a boost to long-term confidence in Ethereum's fundamental value, even as the price remains range-bound. Concurrently, aggregate open interest in Ethereum derivatives has fallen to around $23 billion, signaling reduced leverage and potentially lower short-term volatility.
Analysts suggest the market is at a crossroads. For a sustainable reversal, traders are watching for key signals: a decline in exchange deposit activity, a rise in exchange outflows, the development of a bullish RSI divergence, and a price reclaim of the 50-day EMA with substantial volume. Until these conditions are met, Ethereum's price action is considered to be in a late-stage downtrend, stretched and volatile, sitting in a critical inflection zone.
