- The Ethereum price is near the critical trendline and could bounce or slice through the $1,800 high.
- Whales have bought 449,000 ETH, and exchange balances are being reduced.
- The levels of $1,670 and 2000$ seem to be crucial for ascertaining whether the price will turn bullish or fall further.
Ethereum (ETH) has shown notable signs of strength despite ongoing bearish market pressure. Recently, the on-chain data show that long-term investors hold 449,000 ETH while still in losses, demonstrating their confidence in the further growth of ETH. Exchange reserves have further decreased to 19.1 million ETH, keeping with the trend of users moving their assets off exchanges and holding them in personal wallets.
Source: CryptoQuant
Meanwhile, netflows remain largely negative. The data obtained from Coinglass reveals that ETH has recorded more outflows than inflows since February. Sustained outflow could mean a build-up on the buy-side and the relaxation of selling pressure, which could augment a rebound in the price.
Source: Coinglass
However, trading volume declined by 19.18% over the last 24 hours, which shows signs that short-term demand is waning. At the time of writing, ETH trades at $1,775.60, up 1.12% in the past day. It has gained 12.12% in the last week, lifting its market cap to $214.3 billion.
Key Levels to Watch: $1,895 Resistance and $1,540 Support
Different technical analyses reveal a significant zone of resistance near $1,895, with a level of $2,142 as pivotal for further developments that may impact mass Ethereum bullishness. Bollinger Bands shows Ethereum is in the process of crossing above the midline, but it has not been determined yet. The RSI is closer to 53.7,9, which calls for neutral momentum while targeting a hostile breakout past 60, which may signal short-term continuation.
Source: TradingView
According to the trader DonAlt, ETH needs to regain $2,000 as support to validate a bigger turnaround. He identifies $1,670 as his current short-term pivot, hinting that any failure to hold above this level will be bearish. If the price breaks below the impulse low at $1,540, a bearish pattern would emerge to disprove the current structure.
Source: X
Popular trader Crypto Caesar also noted that the asset is in an area where it may be set to go through a bullish breakout through a long-term descending trend line. The tweet reads, “$ETH is on the verge of breaking out. We really just need that higher high…”
Source: X
On-Chain Activity Signals Mixed Sentiment
Ethereum’s active addresses and transaction count data tell a nuanced story. The active addresses have hovered around 359,600, with a denotable pattern of increase yet. This would mean that the engagement of users has been more or less stagnant while the price has been trending upwards.
Source: CryptoQuant
The total transaction count hovers at nearly 1.3 million per day, hence signifying that overall Ethereum usage continually stays high even within a bearish domain. While it is not at bull market levels, it is sustained well above the bear market level low point.
The downtrend of exchange reserves further strengthens the signal, suggesting that more Ether is being withdrawn from exchange wallets, which widely signifies accumulation. These reserves have halved from 2022, when it reached 30 million, to nearly 19 million, a decrease of 37% in two years. These suggest that there is a general reluctance among investors to sell their securities in the markets.
