TLDR
- ETH maintains support above $1,960 with critical resistance zone between $2,080 and $2,120
- Breaking through $2,150 may ignite a short squeeze rally pushing prices toward $2,800
- Traders eliminated more than $250 million in short positions during the last 24 hours
- Exchange-held Ethereum has declined to 16 million ETH, marking a multi-year low point
- ETH holders are shifting tokens toward staking platforms, cold wallets, and DeFi applications instead of selling
Ethereum (ETH) continues to hold firm above the $1,960 mark following the establishment of a solid foundation around $1,920 during the earlier trading session.
The digital asset pushed beyond the $2,000 threshold and reached an intraday peak of $2,089 before experiencing a modest retracement. Currently, ETH is consolidating its position above the 100-hour Simple Moving Average.
Trading activity has surged by 15% during the previous 24-hour period, reaching $26 billion—representing approximately 11% of Ethereum’s total circulating market capitalization.
This substantial volume indicates robust buying pressure within the present price range.
Bearish Traders Face Mounting Losses
Short position liquidations have exceeded $50 million throughout the past three days, as bullish traders successfully defend the psychological $2,000 threshold.
Within a single 24-hour period, approximately $250 million worth of short positions were liquidated across the broader cryptocurrency market.
Market participants are closely monitoring the $2,150 price level. A decisive move above this threshold would propel ETH into a significant supply zone that has capped price action for approximately one month.
Should buyers successfully breach this resistance barrier, blockchain analytics experts suggest a potential short squeeze scenario could drive ETH toward the $2,800 level—representing a substantial 40% appreciation from present valuations.
The Relative Strength Index has climbed above its 14-day moving average, generating an early bullish signal on the daily timeframe.
Conversely, should ETH slip beneath $1,960, the next support zones are positioned at $1,930 and $1,880. The primary support floor is identified around the $1,840 level.
ETH Holdings on Exchanges Reach Multi-Year Minimum
Additional blockchain data reveals that Ethereum holdings across centralized exchanges have contracted to approximately 16 million ETH.
This represents a significant decrease from the 23 million ETH held on exchanges during early 2023—a reduction of roughly 7 million tokens over approximately three years.
This downward trend is occurring simultaneously with price weakness, which represents an atypical pattern. Typically, declining prices incentivize holders to transfer coins to exchanges in anticipation of selling.
However, current data demonstrates that ETH is being transferred to staking contracts, cold storage solutions, and decentralized finance protocols.
Reduced exchange balances translate to diminished ETH availability for immediate sale on public markets.
On the hourly timeframe, two buy signals have materialized following ETH’s rebound from the $1,900 support level.
The initial signal has already delivered a 2.35x risk-to-reward ratio. The subsequent signal continues to develop with a 0.6x return at present.
Both technical signals indicate $2,150 as the immediate upside target.
ETH is presently trading above $1,960 while exchange reserves remain at their lowest point in multiple years.
