Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
On-chain analyst Arab Chain said Binance’s Ethereum liquidity shock Z-score fell to around -1.00, marking its lowest level in the past seven months.
According to the analysis, the indicator posted a high positive reading in early last year, plunged in February, rebounded around August, and turned lower again in October. Arab Chain said the move into negative territory may indicate ETH liquidity flows slowed relative to the benchmark period. The analyst added Binance’s ETH holdings also declined as the indicator fell, suggesting exchange-held ETH supply may be shrinking and some holdings may be moving to external wallets. If the trend continues, the amount of ETH available for immediate selling on the exchange could decrease.
The liquidity shock Z-score measures how far current liquidity flows deviate from the historical average in standard deviation terms. Positive readings indicate above-average liquidity, while negative readings indicate below-average liquidity.