Recent on-chain data revealed a major change in Ethereum’s net flow to the Binance exchange in December 2024. This eye-catching event could imply several market developments, especially following the asset’s bearish struggles in Q4 2025. Meanwhile, Ethereum notably opened 2026 on a positive note, climbing above $3,100 for the first time since mid-December.
Ethereum Sees $960 Million Inflows as Investor Sentiment Shifts
In a December 3 QuickTake article, the CryptoOnChain analytics page reports a significant change in Ethereum investor activity. Notably, Ethereum’s December net inflow reached $960 million on Binance, the world’s largest exchange by trading volume. This development is particularly important and compelling because it represents an impressive change from the record negative inflows that existed since July 2025.
For most of the second half of 2025, investors chose to continually withdraw more ETH than deposited, likely in favor of long-term, i.e. bullish, accumulation or to divert potential selling pressure elsewhere. However, the figures recorded in December suggest a sharp change in investor behavior, which could have multiple implications for the market.
In general, the increase in foreign exchange flows is considered a bearish signal interpreted as the preparation of market participants for a possible offloading of assets. Given the challenges faced by ETH prices in Q4 2025, this recent rise in net inflows could be a sign of a potential repositioning in anticipation of a long-term bear market.
However, CryptoOnChain highlights some possible positive effects of this event. The huge inflows seen in December could also reflect renewed buyer interest, suggesting renewed demand for Ethereum as investors prepare to accumulate at lower price levels.
Additionally, the large net inflows could also represent a new injection of capital into the Ethereum market, which has been moved to exchanges for active trading. In line with this idea, CryptoOnChain also states that traders could move capital to exchanges to capitalize on trading opportunities generated by expected high volatility.
In conclusion, analysts point out that the sudden reversal leading to massive capital inflows in December is a vital market signal, potentially indicating a new phase of accumulation or increased trading activity.
Ethereum Market Overview
At the time of writing, Ethereum is trading at $3,121 after a slight decline of 0.11% over the past 24 hours. Meanwhile, the daily trading volume is down 52.68% and valued at $11.79 billion. Despite recent gains, the leading altcoin remains 37.15% below its all-time high, recorded in August 2021, following the prolonged market correction of Q4 2022.
