The liquidity of Ethereum on Binance continues to weaken, and its Liquidity Shock Z - Score has also dropped to a multi-month low.

Although this decline comes after several months of fluctuations in the indicator, the recent sharp drop has caught the attention of market analysts.

Binance Z-Score drops to -1.00

According to the latest data from the crypto analysis platform CryptoQuant, the liquidity impact of Ethereum on Binance, denoted as Z-Score, has dropped to around -1.00, reaching the lowest level in nearly seven months.

A sharp decline in Ethereum liquidity has occurred after months of continuous fluctuations in this indicator. Since the beginning of 2026, this indicator has been fluctuating continuously.

It is worth noting that at the beginning of this year, this indicator recorded a higher positive value, followed by a significant decline in February, and since then, it has remained volatile.

Although liquidity indicators gradually recovered and rose again in the summer, there was a sudden reversal in October, falling to the current level.

After this decline, the liquidity activity of Ethereum on Binance has fallen below the usual level corresponding to the historical average of this indicator.

What does this mean for Ethereum?

It should be noted that a sudden drop in liquidity levels does not necessarily mean that traders are closing their positions, or that investors are selling their ETH.

On the contrary, this usually indicates that there has been a change in liquidity conditions, but it does not necessarily indicate in which direction prices will move next.

Although this indicator also appears alongside the contraction of Ethereum's supply on exchanges, it seems that investors are moving their holdings from exchanges to private wallets.

This could bring upward momentum to Ethereum, as it indicates that investors are transferring tokens to private wallets for longer-term holding.