Is Ethereum waking up? Binance ETH Volatility Hits 6-Month High As Volatility Returns

Analysts say high currency volatility often reflects traders quickly repositioning portfolios during periods of increased volatility.

Ethereum (ETH) trading activity on Binance has increased significantly, with approximately 29.6 million ETH changing hands on the exchange in the past 30 days, the highest turnover recorded since September 2025.

This increase suggests that traders are moving the same supply in the market at a faster rate as volatility returns and derivatives positioning.

Increase in Binance ETH turnover

Data shared by Arab Chain on March 5 shows that the 30-day Ethereum exchange liquidity ratio on Binance has reached 8.47. The metric compares the amount of ETH traded in a given period to the total supply available on the exchange.

Binance currently has about 3.5 million ETH exchange reserves, but the trading volume has reached almost 29.6 million ETH in the last month. This means that the same coins have been traded multiple times in a relatively short period of time.

According to Arab data, high levels of turnover often occur during periods when traders actively switch portfolios or when price volatility increases.

“Historically, high turnover rates have often coincided with increased market liquidity and faster movement of assets between wallets and exchanges, indicating increased risk appetite among traders,” Arab Chain said.

The latest reading is the highest since last September, a period that also saw strong price volatility in the market.

Currently, ETH has crossed the $2,000 level, gaining about 4.6% in the last 24 hours. In the longer term, the asset is up about 2% over the past week and a little more than 6% over the past two weeks, though it remains down about 9% over the past 30 days.

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Changing market behavior

Along with the increase in spot turnover, derivatives indicators point to a change in trading behavior in all Ethereum and Bitcoin. That’s according to market analyst Moreno, who noted that net volume in derivatives markets is returning to positive territory after months of aggressive selling.

Net buyer volume measures the difference between traders who place market buy orders and those who execute market sells, indicating who is actively pushing prices up. According to the analyst, when the metric turns positive after a long period of negative readings, the initial phase often reflects short covering and opening of hedge positions rather than pure long-term demand.

The performance of Ethereum derivatives can also appear distorted, as the asset is widely used as collateral in decentralized financial strategies. Many traders are holding ETH while simultaneously shorting perpetual futures contracts to maintain neutral delta positions, creating constant selling pressure in derivatives markets.

Another demand signal came from Coinbase’s premium for both Bitcoin and Ethereum. According to the CW analyst, the premium is positive and indicates that buyers in the US exchange are paying a slightly higher price than in global markets.

Combined with the increase in exchange volume and the change in derivative flows, the data shows that traders are becoming more active again as Ethereum is above the $2,000 level.