Ethereum Approaching $4,400 Resistance with Caution from Binance Inflows

I see that Ethereum has recently broken through the $4,000 resistance level, now trading around $4,200, which marks a substantial rally from lows of $1,500 in May 2025. This momentum indicates strong bullish sentiment for ETH and long-term confidence among investors, especially considering the declining exchange supply ratio across the broader market. Such on-chain data suggests that most traders are moving their ETH off exchanges, reducing immediate sell pressure and reinforcing a positive outlook for ETH’s future growth. However, the recent inflows into Binance, with ETH returning to the exchange and net inflows rising, introduce a layer of short-term caution. This accumulated supply on Binance could be a strategic move by traders looking to profit-taking, arbitrage, or participating in exchange-specific incentives as the price approaches the critical $4,400 resistance. The divergence between the long-term declining exchange supply and the short-term increase on Binance signals a potential for a near-term pullback despite the underlying market strength. Given the current technical indicators like MACD remain positive, but noting the decline in daily trading volume, there is a mixed picture. The bullish scenario anticipates a breakout beyond $4,400 toward $4,800, supporting a continuation of the recent rally. Conversely, persistent inflows into Binance and failure to clear resistance might lead to a retracement back toward the $3,950–$4,000 zone, before attempting another upward move. Overall, Ethereum shows both resilience and caution, emphasizing the importance of monitoring short-term inflow patterns alongside long-term on-chain health.