The Ethereum network is on the brink of one of the most significant upgrades in its history—the transition from proof-of-work (PoW) to proof-of-stake (PoS), commonly known as the Merge. As anticipation builds for this pivotal moment in 2025, major crypto platforms are preparing for potential volatility and technical disruptions. Among them, Binance, the world’s largest cryptocurrency exchange by trading volume, has announced temporary restrictions on Ethereum-related transactions to ensure platform stability.
This strategic move affects all users holding ETH or ERC-20 tokens, with deposits and withdrawals scheduled to be paused during two critical phases of the Merge: the Bellatrix consensus layer upgrade and the Paris execution layer upgrade.
Key Dates for Binance’s Service Adjustments
To safeguard user assets and maintain system integrity during the network transition, Binance will implement service suspensions on the following dates:
- Bellatrix Upgrade (September 6, 2025):
All ETH and ERC-20 deposit and withdrawal functions will be temporarily disabled ahead of this consensus-layer activation. - Paris Upgrade (September 15, 2025):
The final phase of the Merge, where Ethereum officially shifts to PoS. Withdrawals and deposits will remain offline during this period.
Users are advised to plan their transfers accordingly and complete any urgent transactions before these dates to avoid delays.
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Understanding Binance’s Two-Scenario Approach
Given the complexity of blockchain forks and consensus changes, Binance has outlined two possible outcomes following the Merge—and how it will respond to each:
Scenario 1: Seamless Transition (No New Token Created)
In the ideal case, Ethereum completes the Merge without splitting into two separate chains. If this occurs, Binance will resume ETH and ERC-20 deposits and withdrawals as a top priority, minimizing downtime for users. Trading services will continue unaffected throughout the process.
Scenario 2: Chain Split and New Token Creation
There is a possibility that a portion of the community continues supporting the legacy proof-of-work chain, resulting in a fork and the creation of a new token (e.g., ETHW or similar). In such an event:
- The ETH ticker on Binance will represent the PoS (proof-of-stake) version of Ethereum—the chain recognized by the core development team and most major platforms.
- A 1:1 snapshot of user ETH balances will be taken prior to the Paris upgrade.
- Users will receive an equivalent amount of the forked token (from the minority PoW chain) credited to their accounts.
- Details regarding withdrawal availability and listing status for the new token will be shared in a separate announcement.
This proactive approach ensures transparency and fairness while protecting users from unintended exposure to volatile forked assets.
What Trading Functions Will Remain Active?
Despite transactional limitations, Binance has confirmed that several core trading features will remain fully operational during the Merge:
- Spot trading for ETH and ERC-20 tokens
- USDⓈ-M and COIN-M futures contracts involving ETH
- ETH cross and isolated margin trading pairs
However, margin borrowing in ETH will be suspended from September 14 to September 16, aligning with peak network uncertainty. Lending and repayment functions may also experience temporary limitations during this window.
Traders should monitor their positions closely and consider adjusting leverage or collateral to manage risk during this period.
Why Is This Suspension Necessary?
Blockchain upgrades of this magnitude introduce unpredictable network behavior. During the Merge, Ethereum may experience:
- Transaction delays or failures
- Node synchronization issues
- Temporary chain reorganizations
- Increased risk of double-spending attempts on forked chains
By pausing deposits and withdrawals, Binance mitigates the risk of processing invalid or conflicting transactions that could compromise user funds or accounting accuracy. This precautionary measure is standard practice across top exchanges, including Coinbase and Kraken, during major protocol shifts.
Frequently Asked Questions (FAQ)
Q: Will I lose access to my ETH during the suspension?
A: No. Your funds will remain securely held in your account. Only deposit and withdrawal capabilities will be temporarily disabled.
Q: Can I still trade ETH during the Merge?
A: Yes. Spot and futures trading for ETH will continue uninterrupted. Only fund transfers in and out of Binance are affected.
Q: What happens if a new Ethereum fork token is created?
A: Binance will distribute the forked token at a 1:1 ratio based on pre-Merge snapshots. The ETH ticker will reflect the PoS chain.
Q: When will deposits and withdrawals resume?
A: Resumption depends on network stability post-Merge. Binance will prioritize restoring services once the Ethereum blockchain demonstrates consistent finality and security.
Q: Do I need to take any action before September?
A: If you plan to move ETH or ERC-20 tokens, do so before September 6. Keep an eye on official Binance announcements for real-time updates.
Q: Is the Merge safe for my investments?
A: While short-term volatility is expected, the Merge aims to make Ethereum more energy-efficient, secure, and scalable—potentially strengthening long-term value.
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Final Thoughts
The Ethereum Merge represents a transformative milestone for decentralized technology. While temporary service adjustments like Binance’s ETH suspension may cause minor inconvenience, they are essential for ensuring safety, accuracy, and continuity across the ecosystem.
As the crypto world watches this historic shift unfold, users are encouraged to stay informed, avoid panic-driven decisions, and use reliable platforms to navigate periods of high volatility. With proper preparation, the transition offers not just technical improvement—but new opportunities in a greener, more efficient blockchain future.