Ethereum maintains support above $2,800, forming a strong base under $3,000 as buyers favor structure over rapid price spikes.
Exchange reserves drop to 19.7 million ETH, hitting a five-year low and confirming reduced selling pressure from centralized platforms.
Institutional demand rises as ETFs increase Ethereum exposure, reinforcing market strength and supporting a potential breakout toward higher
Ethereum (ETH) is trading at $2,981.93, marking a 15.60% gain over the past week. Market structure continues to favor a sustainable rally as the asset consolidates just below the $3,000 level.
Ethereum Maintains a Bullish Structure Around $3,000
Ethereum recently broke above the $2,800 resistance level and is now forming a base just under $3,000. This development supports a methodical uptrend, with price movement showing respect for previous resistance levels turned support.
According to IncomeSharks, the current price action aligns with a textbook bullish progression. Rather than surging in a single candle, Ethereum is taking time to establish stronger support before advancing. Key levels at $2,400 and $2,600 have been reclaimed, invalidating prior bearish setups.
The consolidation phase is not a sign of weakness. It reflects steady accumulation and market confidence. Historical price behavior shows that similar consolidation zones have often preceded upward moves, making this pattern a constructive signal for further gains.
Drying Exchange Reserves Point to Strengthening Demand
Market dynamics are shifting further in Ethereum’s favor as exchange reserves hit a five-year low. Merlijn The Trader shared that total ETH held on exchanges has dropped to 19.7 million. This trend indicates shrinking supply available for trade.
With supply dwindling, demand appears to be rising. On-chain data suggests that the current reduction in available tokens could tighten the market. When this occurs in conjunction with bullish technical formations, price momentum often gains traction.
This supply trend, combined with reduced volatility and solid price structure, is creating a strong foundation for Ethereum to push higher. While some traders may prefer rapid price movements, the current methodical approach builds longer-lasting support.
Institutional Interest Adds Further Upside Potential
Institutional investment into Ethereum is also increasing. Mister Crypto noted that ETF participants are becoming more aggressive in their exposure to ETH. This could introduce additional buying pressure as regulated financial products accumulate more Ethereum.
As ETF-related inflows increase, the available supply continues to fall. These developments suggest that larger market players view current levels as attractive entry points. With rising institutional interest and diminishing exchange balances, conditions are aligning for a continuation of the current uptrend.
The current structure appears controlled, with volume supporting upward movements and no major signs of distribution. Traders watching for sustained rallies are paying close attention to this steady accumulation phase. Targets of $3,400 and $4,000 remain in sight if consolidation resolves higher.
Ethereum’s recent price action reflects a market focused on sustainability. With fundamentals and technicals pointing upward, Ethereum is building toward a potentially stronger leg in its long-term trajectory.
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