Ethereum Demand Stays Strong As Exchange Reserves Keep Falling – Details

Ethereum (ETH) is currently trading above the $4,400 level, showing resilience despite recent selling pressure and market-wide volatility. However, price action has entered a consolidation phase, with bulls struggling to reclaim higher levels and momentum appearing ￰0￱ has fueled speculation across the market, as analysts remain divided on ETH’s next ￰1￱ Reading: Solana Investors Cash Out Nearly $1-B As SOL Tests Key Price Level Some market participants expect Ethereum to retrace below $4,000, pointing to weakening momentum and sustained resistance near the $4,600–$4,800 ￰2￱ argue that a correction could provide healthier conditions for the next major leg ￰3￱ the other hand, more optimistic analysts see this consolidation as a launchpad for a breakout, with ETH potentially pushing above the $5,000 mark in the coming weeks if demand remains ￰4￱ the bullish case, CryptoQuant data reveals that despite Ethereum’s ongoing correction following its recent all-time high, demand for ETH remains ￰5￱ reserves continue to trend lower as investors withdraw their holdings, while onchain activity highlights persistent ￰6￱ divergence between price volatility and underlying demand suggests that ETH fundamentals remain ￰7￱ Demand Remains Strong Despite Correction According to CryptoQuant analyst Crypto SunMoon, Ethereum continues to demonstrate strong investor interest despite its recent price ￰8￱ reaching new all-time highs, ETH has entered a consolidation phase, pulling back from peak levels.

Yet, unlike many assets that typically see declining demand during corrections, Ethereum’s fundamentals show a different ￰9￱ highlights a clear divergence between Ethereum and Bitcoin reserves on ￰10￱ Bitcoin reserves have remained relatively stable, Ethereum reserves have shown a persistent downward ￰11￱ consistent outflow indicates that market participants are actively withdrawing ETH from exchanges, a common sign of ￰12￱ appear more inclined to hold Ethereum in private wallets or deploy it in decentralized finance (DeFi), reflecting growing confidence in its long-term ￰13￱ trend also aligns with the broader capital rotation from Bitcoin to Ethereum that has been unfolding in recent ￰14￱ of whales moving billions into ETH have repeatedly surfaced, reinforcing the narrative that large players are positioning for Ethereum’s next major ￰15￱ as short-term volatility pressures the price, demand dynamics suggest that institutional and whale interest is not only intact but ￰16￱ many analysts, this divergence between stable Bitcoin reserves and falling Ethereum reserves underscores Ethereum’s leadership in the current market ￰17￱ BTC remains the benchmark for crypto, ETH’s role as a cornerstone of DeFi, Layer 2 scaling, and institutional adoption continues to attract capital.

Ultimately, the resilience of Ethereum’s demand during a corrective phase signals strength beneath the ￰18￱ accumulation persists, the consolidation period could set the stage for Ethereum’s next breakout, potentially pushing prices toward the $5,000 level and ￰19￱ Reading: Galaxy Digital Sells 1,167 Bitcoin Amid Ongoing Volatility Price Analysis: Holding Key Support Amid Consolidation Ethereum (ETH) is currently trading around $4,440, holding above key support levels despite recent ￰20￱ chart shows that ETH has been consolidating after retracing from its recent all-time highs near the $4,900 region. Importantly, the 50-day moving average (blue line) continues to act as immediate support, aligning closely with the current trading ￰21￱ price action reflects indecision as bulls attempt to defend the $4,400–$4,300 zone, which has now become a critical demand area.

A breakdown below this range could expose ETH to further downside toward the $4,000 psychological level and the 100-day moving average (green line), which would serve as the next layer of ￰22￱ the other hand, reclaiming momentum above $4,600 could pave the way for another test of the $4,800–$5,000 ￰23￱ Reading: Ethereum Demand Climbs As Monthly Transactions Hit New All-Time High From a technical perspective, the consolidation phase appears constructive as ETH continues to trade above its 200-day moving average (red line), highlighting the strength of its long-term bullish ￰24￱ selling pressure remains visible, fundamentals and recent whale accumulation trends provide a supportive ￰25￱ coming sessions will be decisive, with ETH needing to hold current support levels to prevent a deeper retrace and set up for its next breakout ￰26￱ image from Dall-E, chart from TradingView