Ethereum has spent the last few days consolidating in a tight range between $3,000 and $3,200, signaling a moment of volatility as the broader market struggles to find direction. Despite attempts to recover, the dynamics have slowed down and the mood is still dominated by uncertainty. Many analysts are now warning that Ethereum may enter a deeper bear phase, pointing to weakening spot demand, a frail market structure and waning optimism on major exchanges.

However, one event in the supply chain caught the market’s attention. According to fresh data from CryptoQuant, there was a huge raise in Ethereum Exchange Netflow to Binance on December 5, 2025, marking one of the largest daily inflows in years. Such a rally typically raises questions about investor intentions: enormous inflows often signal that holders are moving ETH to exchanges with the potential to sell, increasing the likelihood of short-term volatility or downside pressure.

But the broader context matters. Ethereum price remains above key support, suggesting that the market is in a critical decision zone rather than a confirmed breakdown. This combination of consolidation, growing caution and unusually enormous currency inflows sets the stage for what could become a pivotal moment for ETH as investors prepare for its next major move.

The massive raise in network flow raises caution for Ethereum

According to data from CryptoOnchain shared on CryptoQuant, December 5, 2025 Ethereum has experienced a striking shift in exchange activity. The net flow into Binance reached 162,084 ETH while the price hovered around $3,021, marking the largest daily positive net flow since May 2023. Such an inflow is significant not only because of its size, but also because of what it usually signals: an raise in the number of investors moving ETH from self-care to exchange.

Historically, enormous positive net flows are interpreted as potentially bearish, suggesting bondholders may have been preparing to sell or rebalance. When deposits dramatically exceed withdrawals, it can precede increased selling pressure, especially when the market is already in a volatile state. Inflows of this magnitude may act as a fleeting supply shock; if even a portion of this ETH hits the order books as the market sells, the price could face increased volatility or short-term corrective pressure.

For this reason, investors should closely monitor how Binance absorbs this liquidity. Observing the depth of the order book, the response to open interest, and subsequent net flow patterns will reveal whether this was a one-off raise or the beginning of a broader shift in investor behavior. In a market this tender, even a single event can set the tone for the coming days.

The ETH price is trying to stabilize

Ethereum’s daily chart shows the market in the process of stabilizing, but still weighed down by significant structural resistance. After falling below $2,800 in slow November, ETH managed to regain the $3,100 region where it had been consolidating for several days. This range-bound behavior signals a break in the prior downtrend, but the recovery lacks the powerful momentum typically seen in a bullish reversal.

The 50-day and 100-day moving averages remain above the current price, creating a clear resistance zone between $3,250 and $3,500. These dwindling MAs highlight that the broader trend continues to favor sellers, and ETH will need a decisive break above them to change market sentiment. The 200-day MA above reinforces the view that Ethereum is still trading below its long-term trend structure.

Volume has also weakened during this rebound, suggesting buyers are reluctant to engage aggressively at current levels. The recent raise in net stock flows adds another layer of caution, raising the possibility of increased selling pressure in the near future.

ETH is showing early signs of stabilization, but the path forward requires stronger conviction. Until the price breaks above the group of moving averages, this recovery will remain frail and susceptible to renewed downward pressure.

Featured image from ChatGPT, chart from TradingView.com