TLDR
- Ethereum demonstrates stability with price holding above $2,700, while exchange supply drops to unprecedented 6.38% level
- Santiment data reveals accelerating movement of ETH from exchanges to personal wallets
- Technical patterns suggest potential upward momentum with key resistance at $2,850
- Over 10 million wallets accumulating at $2,425 support level creates strong price floor
- Analysts project possible 72% price increase based on current market structure
The Ethereum market is witnessing a remarkable shift in holder behavior, with exchange supply dropping to an unprecedented 6.38% of total circulating supply. This movement represents the lowest level of exchange-held ETH since the cryptocurrency’s launch, according to recent data from market analytics firm Santiment.
Market watchers have observed an accelerating trend of ETH holders moving their assets from centralized exchanges to personal cold storage wallets. This behavior typically indicates a strong conviction among holders about the asset’s future prospects.
The price of Ethereum has maintained stability above the $2,700 mark, showing resilience despite broader market pressures. This price level has become a key psychological support zone for traders and investors alike.
Recent technical analysis reveals the formation of a contracting triangle pattern on the hourly chart, with immediate resistance established at $2,700. The price continues to trade above both the $2,650 level and the 100-hourly Simple Moving Average, suggesting maintained buying pressure.
A deeper look at the data shows substantial accumulation occurring at the $2,425 price point. This level is supported by 10.33 million distinct wallet addresses collectively holding 62.43 million ETH, creating what analysts describe as a robust support foundation.
The price recently tested upper resistance at $2,850, reaching $2,847 before experiencing a minor retracement. This price action has established a clear trading range between $2,600 and $2,850, providing traders with defined levels to watch.
Market Analysis
Market analyst Javon Marks has identified what appears to be the completion of a major consolidation phase. His analysis suggests the potential for a 72.1% price appreciation, which could return ETH to previous all-time high territories.
Technical indicators present an intriguing picture of market conditions. The hourly MACD shows decreasing bearish momentum, while the RSI maintains position above the 50 mark, suggesting balanced market conditions with a slight advantage to buyers.
Multiple support levels have been established below current prices, with key zones at $2,660, $2,600, and $2,550. These levels provide various price stability zones should any selling pressure emerge in the near term.
The first major resistance level sits at $2,725, aligning with the 50% Fibonacci retracement of the recent price movement from $2,845 to $2,605. A breakthrough above this level could pave the way for a test of the $2,850 resistance zone.
Santiment’s analysis highlights that the rate of ETH moving from exchanges to cold storage has reached what they term a “shocking pace.” This acceleration has caught the attention of market participants and analysts alike.
The cryptocurrency had shown relatively modest performance compared to other major assets in early 2024. However, current price action and supply dynamics have sparked renewed interest from both retail and institutional investors.
A combination of technical setups, declining exchange supply, and increased wallet accumulation has created what market observers describe as potentially favorable conditions for price appreciation.
Should Ethereum successfully breach the $2,850 resistance level, analysts suggest the next major target would be the $3,000 price zone, with possible extension toward $3,050 in the near term.
The most current market data shows ETH trading at $2,745, continuing to hold above critical support levels as market participants monitor developments for potential breakout signals.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
