Binance sees 166,000 ETH withdrawals in a day, a 3-year high

Binance processed 166,000 ETH withdrawal transactions on July 1, the highest single-day count in more than three years, as investors moved assets off the exchange.

More than 3 million ETH have exited Binance since early May, according to CryptoQuant analyst Darkfost, who flagged the withdrawal spike as a signal of deliberate repositioning rather than panic selling.

The last time the exchange saw comparable withdrawal volume was March 2023, in the aftermath of the FTX collapse. The surge coincided with a roughly 10% rebound in ETH prices from the $1,500 level over two days, suggesting investors bought the dip and moved tokens into self-custody wallets.

The reduction in readily available supply on Binance could amplify price moves if buying pressure picks up, as thinner sell walls mean less ETH sitting on exchanges ready to be sold. July 1 also marked the effective date for certain provisions under the European Union's MiCA framework, which may have prompted preemptive withdrawals from European users.

Moving assets off an exchange and into a self-custody wallet is generally read as a signal that holders intend to keep their tokens rather than sell them. If investors were planning to dump their ETH, they would leave it on Binance where it can be traded instantly. The 3 million ETH that have left the exchange since early May represent a substantial reduction in the readily available pool of tokens.

ETH is trading approximately 67% below its peak from August 2025, according to CoinGecko data. The recent bounce from $1,500 offers some relief but remains modest relative to the damage over the past year. Ethereum's market capitalization stands at $200.3 billion, with the token down 32% year over year.

For traders watching order books, reduced exchange supply could translate to thinner sell walls. If buying pressure picks up even modestly, the price impact could be amplified because there is simply less ETH sitting on exchanges ready to be sold. Investors should watch whether the withdrawal trend continues or if July 1 was an anomalous spike driven by MiCA jitters that quickly normalizes.

This article is for informational purposes only and does not constitute investment advice.