TLDR
- Ethereum found support at $2,440 and is showing fresh upward momentum
- ETH exchange supply has reached its lowest level since August 2024, indicating bullish sentiment
- Whales have added over 670K ETH to their holdings in the past nine days
- A bullish trend line is forming with support at $2,500
- ETH needs to clear the $2,620-$2,650 resistance zone to gain further strength
Ethereum has been showing signs of recovery, with the price finding solid support at $2,440 and beginning a fresh upward trajectory. The second-largest cryptocurrency by market cap is currently trading at $2,580, representing a 2% gain in the early Asian session on Thursday.
The price has moved above several key levels, including $2,500 and $2,520, and is now trading above the 100-hourly Simple Moving Average. This movement comes while Bitcoin recently traded to a new all-time high.
Technical indicators are pointing to growing bullish momentum. A connecting bullish trend line is forming with support at $2,500 on the hourly chart of ETH/USD. The hourly MACD is gaining momentum in the bullish zone, while the RSI is now above the 50 zone.
On the upside, Ethereum could face resistance near the $2,620 level. The next key resistance is near $2,650, followed by a major resistance at $2,720. A clear move above these levels could potentially send the price toward the $2,840 resistance zone.
Whale Activity Fuels Price Recovery
Data shows that Ethereum whales have been actively accumulating the cryptocurrency. Addresses holding between 10,000 and 100,000 ETH have expanded their balance by over 670,000 ETH in just the past nine days.
This buying pressure from large holders comes as smaller investors have been distributing, with their total balance declining by 110,000 ETH during the same period.
The increased whale activity coincides with a significant reduction in ETH supply on exchanges, which has fallen to 18.73 million ETH. Since April 24, more than 1 million ETH have left exchanges for private wallets, suggesting long-term holding intentions.
As a result, ETH’s supply on exchanges has reached its lowest level since August 2024. This reduced exchange supply helps explain why ETH’s price has maintained an upward trajectory since late April.
Despite these positive signals, ETH continues to move in a range-bound pattern near the $2,500 mark. Futures data shows increased trading volume whenever prices move below or above this level, making $2,500 a critical point that could define Ethereum’s next major trend.
If Ethereum fails to clear the $2,620 resistance, it could start a fresh decline. Initial support is near $2,525, with the first major support at $2,500 and the trend line. A clear move below $2,500 might push the price toward the $2,440 support level.
The cryptocurrency experienced $106.52 million in futures liquidations in the past 24 hours. The total amount of liquidated long positions is $56.20 million, while short positions account for $50.32 million.
Search interest for Ethereum has picked up pace again, reaching the 60-point mark, up from 45 on May 17 but down from the 100-point level seen during the May 8-9 rally. This indicates that intense retail excitement isn’t driving ETH’s price, leaving room for more robust growth.
For a clear directional move, ETH needs a high-volume push above the $2,850 resistance or below the $2,260-$2,100 range. A move above $2,850 could see ETH rally toward the $3,250 resistance, while a breakdown below $2,100 could send its price to the $1,688 support.
Currently, the daily chart shows the Relative Strength Index continuing its horizontal trend near the overbought region line, indicating slight weakness in the bullish momentum. Meanwhile, the Moving Average Convergence Divergence is testing its moving average line as its histogram bars are about to flip negative.
ETH is now trading above the 76.4% Fibonacci retracement level of the downward wave from the $2,615 swing high to the $2,442 low, suggesting strong recovery potential. An upside break above $2,840 resistance might call for more gains, potentially pushing Ethereum toward the $3,000 mark in the near term.
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