Binance’s latest Proof of Reserves reveals a subtle but significant shift in trader strategy, suggesting a capital rotation out of Bitcoin and into Ethereum. The June 1, 2025, report shows user Bitcoin holdings fell by 1.82% to 593,000 BTC, while Ethereum balances climbed 1.05% to 5.34 million ETH.
Binance’s latest Proof of Reserves reveals a subtle but significant shift in trader strategy, suggesting a capital rotation out of Bitcoin and into Ethereum. The June 1, 2025, report shows user Bitcoin holdings fell by 1.82% to 593,000 BTC, while Ethereum balances climbed 1.05% to 5.34 million ETH.
While the changes are modest, the dip in both Bitcoin and USDT holdings, which fell by $223 million, points to a clear trend: traders may be moving capital into ETH to capitalize on its growing momentum and bullish market sentiment. This on-chain data from the world’s largest exchange provides a new layer of evidence for an increasingly popular market thesis.
According to market analyst Ted Pillows, Ethereum is entering a strong accumulation and momentum phase.
$ETH is still consolidating after a bullish May,
This bullish forecast is supported by fundamental network growth. Ethereum processed 41.98 million transactions in May, for the network.This surge in user activity indicates strengthening demand for ETH’s blockspace and helps explain why users on exchanges like Binance are opting to increase their holdings.
Based on the daily chart below, Ethereum is trading around $2,482 at the time of writing. Key Fibonacci retracement levels suggest $2,558 (0.236) and $2,700 (0.382) are near-term resistance zones.
Bulls need a solid breakout above the $2,700 mark to regain momentum toward the 0.618 Fib at $2,929 and possibly the full retracement at $3,301.
The RSI is at 50.62, hovering near neutral territory and hinting at indecision, while the MACD is flattening out, suggesting waning bullish strength but no decisive bearish divergence yet. Consolidation may persist until a breakout or breakdown clears direction.
