Recent on-chain data shows a significant change in Ethereum’s net flow to Binance in December 2024. This notable shift could point to several market developments, especially after Ethereum’s bearish performance in the fourth quarter of 2025. Meanwhile, Ethereum has started 2026 on a positive note, rising above $3,100 for the first time since mid-December.
Related Reading: Ethereum Finds Its Footing Again, But Here’s Why Bulls Still Have Work To Do
### Ethereum Sees $960 Million Inflows as Investor Sentiment Shifts
In a QuickTake post on December 3, the analysis page CryptoOnChain reported an important change in Ethereum investor activity. Specifically, Ethereum’s net inflow to Binance reached $960 million in December. This development is particularly significant because it marks a sharp reversal from the negative inflows seen since July 2025.
For most of the second half of 2025, investors consistently withdrew more ETH than they deposited, likely for long-term accumulation or to move potential selling pressure elsewhere. However, the December figures suggest a sudden shift in investor behavior, which could have several implications for the market.
Typically, increased exchange inflows are seen as a bearish signal, indicating that market participants may be preparing to sell. Given ETH’s price struggles in Q4 2025, this recent spike in net inflows could signal repositioning for an expected long-term bear market.
However, CryptoOnChain also notes some potential positive interpretations. The large inflows in December could reflect renewed buyer interest, suggesting investors are looking to accumulate at lower price levels. Additionally, these inflows may represent new capital entering the Ethereum market for active trading on exchanges.
Following this line of thought, CryptoOnChain suggests traders might be moving capital to exchanges to take advantage of expected high volatility and trading opportunities.
In conclusion, analysts emphasize that this sudden reversal and the resulting massive inflows in December are a key market signal, potentially indicating a new phase of accumulation or increased trading activity.
Related Reading: Weekend Trap? Bitcoin Enters Choppy Range As Critical Trend Line Holds Below
### Ethereum Market Overview
At the time of writing, Ethereum is trading at $3,121, down 0.11% over the past 24 hours. Daily trading volume has fallen by 52.68% to $11.79 billion. Despite recent gains, the leading altcoin remains 37.15% below its all-time high from August 2021, following the extended market correction in Q4 2022.
Featured image from Flickr, chart from Tradingview
Frequently Asked Questions
FAQs Ethereums 960 Million Inflow End of Outflow Streak
Q1 What does it mean that Ethereum saw a 960 million inflow
A It means that over a specific period investment products that track Ethereums price had a net 960 million more money invested into them than was withdrawn This indicates strong renewed buying interest from institutional and larger investors
Q2 What was the fivemonth streak of outflows that ended
A For the five months prior to this report these same Ethereum investment products consistently experienced more money being pulled out than being put in This streak of net negative movement has now been broken by this large positive inflow
Q3 Why is this news significant for Ethereum
A Its a major shift in sentiment Ending a long outflow streak with such a large inflow suggests that bigmoney investors are becoming bullish on Ethereum again potentially due to upcoming network upgrades regulatory clarity or broader crypto market recovery It can be a leading indicator of price support
Q4 Does this 960 million go directly into buying ETH tokens
A Not directly into the open market This money flows into regulated financial products The issuers of these products then typically buy an equivalent amount of ETH to back the product which indirectly increases demand and can push the price up
Q5 What could have caused this sudden large inflow
A Analysts point to a few key factors
Spot ETF Approval Hopes Growing optimism that US regulators might approve spot Ethereum ETFs
Dencun Upgrade The successful implementation of this major upgrade significantly reduced transaction fees on layer2 networks making Ethereum more scalable and attractive
Broader Crypto Rally Positive momentum in Bitcoin and the overall crypto market often spills over to Ethereum
Q6 As a beginner how does this affect me if I hold some ETH
A Primarily through market sentiment Large inflows can create positive momentum potentially increasing ETHs price It also reinforces Ethereums position as the leading smart contract platform in the eyes of major institutions which can be good for longterm adoption