- Binance’s June PoR report shows user BTC holdings down and ETH holdings up.
- This data suggests a capital rotation into Ethereum as its network usage hits a 1-year high.
- Analysts predict ETH could rally to $4,000 if it breaks the key $2,700 resistance.
Binance’s latest Proof of Reserves (PoR) report 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 $223 million, points to a clear trend: traders may be moving capital into ETH to capitalize on its growing momentum and bullish market sentiment. This on-chain data from the world’s largest exchange provides a new layer of evidence for an increasingly popular market thesis.
Investors Rotate into ETH as Momentum Builds
According to market analyst Ted Pillows, Ethereum is entering a strong accumulation and momentum phase.
“$ETH is still consolidating after a bullish May,” he noted, adding that rising ETF inflows and revived network usage are early signals of a significant price move. He predicts Ethereum will break $3,000 this June and could reach $4,000 by Q3.
This bullish forecast is supported by fundamental network growth. Ethereum processed 41.98 million transactions in May, a one-year high 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.
Related: How Binance Is Handling a Founder’s Spat and a Key Executive’s Exit
Ethereum Price Eyes Breakout Above Key $2,700 Resistance
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.
Related: $1.2M SHIB Transfer to Binance Traced to Hacker, Analysts See 500% Surge
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.
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