Has Ethereum Begun a Reversal in March? Data Reveals Key Signals

The price of Ethereum recovered above $2,000 while negative news about the war continued to spread. At one point, the price reached $2,200, the highest level since February 5. However, this move may not be enough to confirm a reversal.

Recent Ethereum trading data explains why risks remain significant in March.

Ethereum Remains in a Volatile Range Driven by Speculative Sentiment

According to data from CryptoQuant, $ETH trading volume on Binance over the past 30 days reached about 29.6 million $ETH. This is the highest level since September last year.

Meanwhile, the $ETH supply currently held on Binance is only about 3.5 million $ETH. Recent data also shows that $ETH supply on exchanges has declined sharply. More than 31.6 million $ETH were withdrawn from exchanges in February 2026. This marks the highest outflow level since November of the previous year.

$ETH Trading Volume & Exchange Reserve on Binance. Source: CryptoQuant”> $ETH Trading Volume & Exchange Reserve on Binance. Source: CryptoQuant

As a result, the Liquidity Ratio surged to around 8.47. Analysts calculate this metric by dividing trading volume during a period by the actual supply available on exchanges. The indicator reflects how intensively the existing $ETH supply is being “used.”

A level of 8.47 indicates that the same amount of $ETH is being traded repeatedly within a short period. Traders rotate the same liquidity instead of executing one-directional transactions.

Ethereum Liquidity Ratio on Binance. Source: CryptoQuant.

Analyst Arab Chain from CryptoQuant explained that this pattern reflects extremely active trading, largely driven by speculation.

Traders may be executing short-term orders, scalping strategies, or using $ETH as collateral in derivatives markets such as futures and perpetual contracts. These strategies can cause trading volume to surge even without a large increase in real supply.

“This pattern often emerges during periods of significant price volatility or when the market is undergoing a repositioning phase among investors,” Arab Chain explained.

Arab Chain also added that historically, periods of high Liquidity Ratio often coincide with strong price volatility, improving market liquidity, and a rising risk appetite among investors.

As a result, short-term trading sentiment and the pursuit of quick derivative profits may create an environment that triggers liquidations for traders.

While many analysts remain optimistic after $ETH broke above $2,000, market analyst IncomeSharks believes it may still be too early for bulls to celebrate.

The $ETH/USD daily chart he shared shows $ETH trading below the SuperTrend line near $2,230, which currently acts as strong resistance.

“A nice daily candle is good to see but means nothing if it’s not followed by more. The bulls can celebrate on a close of the SuperTrend or after we see follow through,” IncomeSharks stated.

Ethereum Price Structure vs. Super Trend. Source: IncomeSharks

These observations suggest that excessive optimism about an Ethereum reversal in March could harm investors.

According to the latest analysis from BeInCrypto, Ethereum must close above $2,140 to officially exit the sideways phase that has lasted since early last month. Otherwise, the price could decline to lower levels

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