Ethereum is under pressure, but investors may not be in a hurry to sell. Despite the decline in the price of ETH, the reserves of Ethereum on Binance exchanges have dropped to a six-month low, which raises a question: Are holders taking this opportunity to reposition their holdings rather than selling?

Ethereum exchange reserves decline during market corrections

According to the analysis of Darkfost, the broader altcoin market, measured by Total2, saw its market value evaporate by over $110 billion in just three days. The largest altcoin by market value, ETH, fell by 11%, resulting in a reduction of over $38 billion in market value.

However, the reserve trend of ETH for Binance is the opposite. In recent times, the reserve has decreased from 3.57 million to 3.47 million ETH. Going back to August, the reserve was 3.92 million ETH, which means it has decreased by nearly 11.5% since then.

This change is of significant importance. The decrease in the amount of ETH held by the exchanges may be related to holders transferring their tokens to self-hosted accounts, but the reserve data alone cannot prove the specific intentions of each investor.

Binance Withdrawal volume reaches a record high

The withdrawal campaign provides another layer of information. On October 6th, Binance recorded over 320,000 ETH withdrawal transactions in a single day.

Despite the price decline, investors continue to transfer ETH off the platform. This may reflect a longer-term holding strategy, or it could be that they are using the assets for other purposes until a better time to sell arrives. In any case, these withdrawals do not necessarily imply that prices will rebound.

ETH Must hold the breakout range

The price trend now presents another challenge. The price of ETH has fallen back to the range of $2,450 to $2,620, which is considered a key breakout area.

The technical scenario is straightforward: if it reclaims the $2,600 level, the price could potentially rise to $3,400; if that range is lost, $2,100 will become the next support level mentioned in the analysis. If the breakout fails, the recent trend might evolve into a false breakout.

For now, the decline in Ethereum exchange reserves and record levels of withdrawals indicate that investors are still transferring tokens during this period of correction. However, whether the price of ETH can rebound to $2,600 or slide down to $2,100 remains the most immediate question at hand.