Ethereum Maintains Strong Demand as Exchange Reserves Decline
Current ETH Trading Status
- Ethereum (ETH) trades above $4,400 amid volatility.
- Price action indicates consolidation with challenges in reclaiming higher levels.
Market Sentiment
- Some analysts predict a retracement below $4,000 due to weakening momentum.
- Others suggest consolidation could lead to a breakout above $5,000 if demand remains strong.
Demand Dynamics
- CryptoQuant data shows robust demand for ETH despite recent price corrections.
- Exchange reserves are trending lower, indicating accumulation by investors.
- Divergence exists between ETH and Bitcoin reserves; ETH outflows suggest increased long-term holding.
- Whale movements into ETH indicate institutional interest is growing.
Price Analysis
- ETH currently trades around $4,440 and maintains key support levels.
- The 50-day moving average acts as immediate support around the $4,400–$4,300 zone.
- A breakdown below this range could lead to further declines toward $4,000.
- Reclaiming momentum above $4,600 may test the $4,800–$5,000 region.
- Technical indicators show ETH trading above its 200-day moving average, reinforcing bullish structure.
If support levels hold, Ethereum may prepare for its next upward movement.