Ethereum has fallen below $2,150 due to increased selling, wiping out recent gains and creating market uncertainty. New data from CryptoQuant reveals the specific reason for this drop, which changes our understanding of the situation and what’s needed for a potential recovery.
Data from Binance shows a buildup of Ethereum on the exchange during the first half of May, right before the price dropped. For several days, the exchange consistently saw large amounts of ETH being deposited – not just once, but repeatedly. Each deposit suggests coins were being moved from secure storage or personal wallets to Binance, likely in preparation for selling.
The large amount of cryptocurrency deposited on Binance hasn’t gone anywhere; it’s simply waiting. These deposits signal the *potential* for selling, not actual selling. They represent coins that are easily accessible for the market, ready to be sold when the owner chooses, or when a pre-set price point is reached.
CryptoQuant’s data indicates that the Ethereum supply increased *before* the recent price drops. The fall below $2,150 could signal the market is now reacting to the accumulated Ethereum that had been building up on Binance during the first half of May.
The Supply Arrived, The Price Followed It Down: Now the Market Needs Time
CryptoQuant’s research shows a clear link between Ethereum deposits on Binance and its price. Throughout the first half of May, a large number of ETH were deposited into Binance. Shortly after, the price of Ethereum dropped by around $300, falling from near $2,400 to its current level of about $2,100. This suggests the deposits directly contributed to the price decrease.
When the new supply arrived, there weren’t enough buyers at the current price, so prices had to drop until a balance between sellers and buyers was found.
As a crypto investor, I’ve been watching Ethereum closely, and I’m seeing a potentially positive sign. The big wave of ETH being deposited into Binance seems to be slowing down. For the first couple of weeks in May, we saw a consistent flow of ETH *into* Binance, which put downward pressure on the price. But that hasn’t continued at the same rate recently, suggesting the immediate selling pressure might be easing up. It’s not a guarantee of a price increase, but it’s definitely something I’m keeping an eye on.
Just because the rate of deposits is slowing down doesn’t mean the issue is solved. Our analysis clearly explains how these deposits affect future price movements. The Ethereum that entered the system during the recent surge isn’t going anywhere just because fewer deposits are coming in. It’s still available to sell, and the market needs to see consistent buying – people actually purchasing this existing supply at current prices – before Ethereum can stabilize and begin a lasting recovery.
Right now, the market is at $2,100 to see if buyers are stepping in. Recent data suggests selling is slowing down, but the price needs to show if there’s enough demand to balance things out.
Ethereum Struggles Below Major Weekly Resistance As Long-Term Trend Weakens
Ethereum is currently trading around $2,110. It couldn’t maintain its upward movement after failing to break through the $2,300-$2,450 price range, which is now a major barrier to further gains. This suggests the market is stuck, balancing optimism about a long-term price increase with selling pressure from large investors.
Ethereum’s price growth stalled after it failed to break through the $4,000-$4,500 level in late 2025. Since then, the price has been in a downtrend, repeatedly falling short of key moving averages. While there was a short-lived price increase from the lows in March, it lost steam when it neared the $2,400-$3,000 range.
Ethereum’s price has fallen below its 200-week moving average, which indicates the overall market is currently weaker than it has been during previous periods of recovery. The recent price drop has also seen consistently high trading volume, suggesting sellers are still actively driving prices down.
Ethereum now has key support around $2,000 to $2,100. If the price falls below this level, it could drop further, potentially reaching the $1,700-$1,800 range where buyers strongly stepped in to prevent further price declines earlier this year.
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2026-05-19 03:27