Recent on-chain data revealed a major shift in net flows from Ethereum to the Binance exchange in December 2024. This notable event could imply several market developments, especially after the asset’s bearish struggles in the fourth quarter of 2025. Meanwhile, Ethereum has started 2026 on a particularly positive note, rising above $3,100 for the first time since mid-December.
Ethereum sees $960 million inflows as investor sentiment shifts
In one QuickTake post on December 3, the CryptoOnChain analytics page reports a significant change in Ethereum investor activity. Notably, Ethereum net inflows reached $960 million in December on Binance, the world’s largest exchange by trading volume. The development is particularly important and compelling as it represents an impressive shift from the negative inflow records that have existed since July 2025.
Throughout most of the second half of 2025, investors had chosen to continually withdraw more ETH than deposit it, likely in favor of long-term accumulation, i.e. bullish, or to divert potential selling pressure elsewhere. However, December’s figures indicate an abrupt change in investor behavior, with several potential consequences for the market.
In general, increased foreign exchange inflows are considered a bearish signal, interpreted as market participants’ preparation for a possible asset offload. Given ETH’s price struggles in Q4 2025, this recent spike in net inflows could be indicative of a possible repositioning for an expected long-term bear market.
However, CryptoOnChain highlights some possible positive effects of this event. The massive inflows in December could also reflect a resurgence in buyer interest, signaling renewed demand for Ethereum as investors prepare to accumulate at lower price levels.
Moreover, the large net inflow could also represent a new injection of capital into the Ethereum market that has been moved to exchanges for active trading. In line with this thinking, CryptoOnChain also states that traders may move capital to exchanges to take advantage of trading opportunities driven by expected high volatility.
In conclusion, the analysts emphasize that the sudden reversal that led to the huge inflows in December is a vital market signal that may indicate 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% in the past 24 hours. Meanwhile, its daily trading volume is down 52.68% and is valued at $11.79 billion. Despite recent gains, the prominent altcoin remains 37.15% below its all-time high recorded in August 2021, following the extended market correction of Q4 2022.