Ethereum (CRYPTO:ETH) posted a $960 million net inflow to Binance in December, marking a clear reversal after five months of sustained outflows.
On-chain data showed investors deposited more ETH than they withdrew for the first time since July 2025.
The shift followed a difficult fourth quarter in 2025, when Ethereum struggled to maintain upward momentum.
Ethereum entered 2026 on stronger footing, rising above $3,100 for the first time since mid-December.
Analysts said the inflow signalled a notable change in investor behaviour compared with most of the second half of 2025.
Throughout H2 2025, investors largely removed ETH from exchanges, often linked to long-term holding strategies.
Those sustained outflows were widely interpreted as a sign of accumulation and reduced selling pressure.
December’s figures showed that pattern had abruptly changed, raising fresh questions about market intent.
Increased exchange inflows are traditionally viewed as a bearish indicator, as assets become easier to sell.
Some analysts believe the inflows could reflect preparation for further downside after prolonged price weakness.
Ethereum’s struggles during late 2025 may have encouraged traders to reposition their holdings.
The inflows may also suggest investors are bracing for a more volatile trading environment.
However, analysts cautioned that exchange inflows do not always lead to immediate sell-offs.
CryptoOnChain noted the data could also point to renewed interest from buyers.
The inflows may represent investors preparing to accumulate ETH at perceived lower price levels.
Analysts said renewed demand often emerges during periods of uncertainty.
The movement of funds onto exchanges can also signal increased trading activity rather than outright selling.
Traders may be positioning capital to exploit short-term price swings.
Expectations of higher volatility in early 2026 could be driving this behaviour.
Binance, as the largest exchange by volume, often reflects broader market sentiment shifts.
The size of the December inflow stood out compared with previous monthly figures.
Analysts described the reversal as one of the most significant net flow changes of the year.
Ethereum’s price recovery above $3,100 added weight to the changing sentiment narrative.
Market watchers said price action and on-chain data together suggest a transition phase.
Some investors may be rotating strategies rather than abandoning long-term conviction.
The inflows could mark the start of a new accumulation cycle under different conditions.
Others believe the data reflects heightened caution rather than outright optimism.
Analysts stressed that context remains critical when interpreting exchange flow data.
Broader macro conditions and crypto market trends will shape how the inflows play out.
The December reversal highlighted how quickly sentiment can change in crypto markets.
Observers said the coming weeks will clarify whether the inflows lead to selling pressure or sustained recovery.
At the time of reporting, Ethereum price was $3,137.41.