TLDR
- Ethereum price holds $4,639 support with 13% two-week gains targeting $5,000 resistance
- Exchange reserves drop to 18.8 million ETH, lowest since 2016, creating supply shortage
- 36 million ETH staked (30% of supply) reduces selling pressure from long-term holders
- Technical analysis shows ascending channel with key resistance at $4,760 and $4,945
- Institutional whale wallets accumulate positions while trading volume hits $43.4 billion
Ethereum price continues its bullish momentum at $4,639, positioning for a potential breakout toward the $5,000 psychological level. The world’s second-largest cryptocurrency has delivered impressive gains of over 13% in just two weeks since bouncing from September lows near $4,070.
Market capitalization stands at $559.9 billion with robust daily trading volume of $27.9 billion, indicating strong investor interest and liquidity.
Supply Dynamics Create Bullish Foundation
Exchange reserves have plummeted to 18.8 million ETH, marking the lowest level observed since 2016. This dramatic supply reduction on centralized exchanges creates natural upward price pressure as fewer tokens remain available for immediate selling.
Staking participation has reached unprecedented levels with over 36 million ETH now locked in staking contracts. This represents approximately 30% of the total circulating supply, effectively removing these tokens from active trading.
Large holders continue demonstrating confidence through accumulation patterns. Whale addresses controlling over 10,000 ETH have been consistently adding to positions throughout recent months, suggesting institutional-grade investors view current prices as attractive entry points.
On-Balance Volume indicators recently flashed accumulation signals before the latest price advance. Weekly network inflows totaled $2.5 billion, exceeding previous periods and confirming sustained institutional interest.
Technical Analysis Points Higher
Chart patterns reveal ETH trading within a well-defined ascending channel, characterized by higher lows and consistent tests of upper resistance boundaries. The confirmed breakout above $4,450 was supported by strong bullish candlestick formations, including long green candles and engulfing patterns.
Key support levels are established at $4,550 and $4,425, where the 50-day moving average provides technical backing. The long-term foundation sits at the 200-day moving average near $3,994.
Resistance targets include $4,760 as the immediate hurdle, followed by $4,945 and $5,135. These levels represent previous rally peaks where profit-taking emerged.
The Relative Strength Index has moderated from overbought levels of 69 down to a healthier 60, providing room for continued upside without triggering bearish divergences.
Trading volume surged 12.26% over 24 hours to $43.4 billion, confirming the momentum behind recent price action and suggesting institutional participation rather than retail speculation.
Ethereum Price Prediction
Short-term price targets point toward $4,760 as the next logical resistance test. A daily close above this level would likely accelerate momentum toward $4,945 and eventually $5,135.
The validator exit queue contains 2.6 million ETH, but the mandatory 45-day waiting period for withdrawals should defer immediate selling pressure. This technical requirement may actually support current price levels during the queue processing period.
Exchange netflows show persistent outflows favoring cold storage solutions, indicating long-term holding intentions rather than trading activity. This pattern typically precedes sustained bull runs when combined with technical breakouts.
The combination of supply constraints, institutional accumulation, and bullish technical patterns creates favorable conditions for continued price appreciation toward the $5,000 milestone.
