Ethereum (ETH) broke $4,000 for the first time since December, indicating a bullish rebound. Buyers took over after several days of turbulence and market uncertainty,
CryptoQuant on-chain data shows that ETH exchange reserves are gradually declining, supporting the optimistic story. This means that investors, especially significant holdings, are removing their coins from exchanges, limiting market liquidity. A supply shock is possible when decentralized finance (DeFi), real-world assets (RWA), and staking activities increase ETH demand.
Market observers attribute additional increases to tightened supply and sustained purchasing pressure. Ethereum might surge to the next significant barrier levels if the trend continues. Traders are monitoring to see whether ETH can stay over $4,000 and construct a foundation for a run to its all-time highs.
This rapid outflow is squeezing supplies. With fewer coins for spot trade, price pressure may rise, particularly if demand persists. The rate of accumulation shows these major investors are building for the long run.
Public corporations using Ethereum for treasury initiatives boosts the optimistic picture. Sharplink Gaming bought a lot of ETH, joining a growing roster of digital asset diversifiers.
Ethereum history. Analysts foresee exceptional price activity in the coming months due to tightening supplies and growing demand if the trend continues. Ethereum might stay over $4,000 and go toward new highs under such circumstances.
Ethereum's weekly chart indicates a significant break over $3,860 barrier, propelling the price to $4,017, its highest level since December 2024. This 14.87% weekly gain indicates strong bullish momentum after weeks of accumulation and recovery from the $2,852
The 50, 100, and 200-week SMAs heading below the market support the present price action, with the 50-week SMA around $2,726 bolstering the long-term uptrend.
If ETH holds above $3,860 on the weekly close, the all-time high at $4,800–$4,900 is next
