Ethereum (ETH) briefly broke through the $2,600 mark, thanks to a resumption of accumulation in exchange supply, combined with a strong capital inflow into ETH investment products, totaling 583 million USD in just one week.
ETH reserves on exchanges hit a record low amid a wave of 583 million USD flowing into ETF funds.
Ethereum resumed its bullish trend on Monday, as ETH reserves on exchanges continued to plummet – from 18.72 million down to a record low of 18.57 million ETH in just 24 hours. This sharp decline indicates that selling pressure is weakening, while buying demand is clearly increasing.
At the same time, the total amount of ETH staked also increased by 80,000 units during the same period, reflecting increasingly strong optimism from investors – according to data from Beaconcha.in.
Notably, this accumulation wave occurs right after a week that recorded capital inflows into Ethereum investment products reaching 583 million USD – the highest ever according to CoinShares statistics, indicating increasing interest from financial institutions in the largest altcoin in the market.
Buying pressure for Ethereum was triggered by a massive capital inflow of 528.12 million USD into spot ETF funds in the US last week – the highest since December 2024. Notably, these investment products maintained a 19-day consecutive net inflow streak before pausing on Friday, due to geopolitical tensions in the Middle East causing a slight reversal with a net outflow of 2.18 million USD.
"Ethereum's recovery momentum is currently supported by the narrative of 'digital oil' along with solid fundamentals of the ecosystem, such as the Pectra upgrade and the increase in stablecoin activity – with nearly 50% of the circulating stablecoins currently issued on the Ethereum network," said Ms. Tracy Jin, CEO of the MEXC exchange.
"The new regulations related to staking and ETFs linked to stablecoins coming into effect is also a positive signal, contributing to strengthening investor confidence," she added.
Despite the continuous positive signals surrounding Ethereum recently, Ms. Jin remains cautious in her year-end price forecast.
ETH could fluctuate in the price range from $2,800 to $3,600 by the end of the year," she noted, emphasizing that: "If the staking ETF funds and technical improvements on the network are implemented on schedule, the possibility of ETH breaking through the forecast level is entirely feasible.
Ethereum price forecast: ETH rejected at the 200-day SMA line.
In the past 24 hours, Ethereum has witnessed a total liquidation value of futures contracts reaching 134.04 million USD, according to data from Coinglass. Of this, Long positions accounted for 70.55 million USD, while Short positions were liquidated at 63.49 million USD — reflecting significant market volatility.
ETH maintained the support level around $2,500 throughout the weekend, continuously testing the 200-day simple moving average (SMA) – which is currently acting as dynamic resistance. If ETH can break through and turn the 200-day SMA into a support zone, this second-largest altcoin in the market could aim for the important resistance area at $2,850. However, if it continues to be rejected at this level, the risk of forming a double-top pattern – which often signals a bearish reversal – will become increasingly evident.
Conversely, if support at $2,500 is broken, ETH needs to maintain the lower boundary of the main price channel – which is reinforced by the 50-day SMA line – to avoid the risk of a deep drop to the support area of $2,260-$2,110.
The Relative Strength Index (RSI) is currently above neutral and may test its own moving average, while the Stochastic Oscillator (Stoch) is below neutral. If both indicators cross upwards simultaneously, the bullish momentum will be significantly strengthened.