Ethereum's $3K Struggle: Exchange Supply Hits Six-Month Low

Ethereum Struggles to Reclaim $3,000 as Exchange Supply Hits Six-Month Low

Ethereum (ETH) has been grappling to regain momentum since losing the $3,000 threshold on February 2, remaining below that level ever since. Over the past 30 days, ETH has dropped more than 20%, reflecting ongoing market weakness and uncertainty about its next move.

Technical indicators like the DMI suggest a lack of a clear trend, with both bullish and bearish pressures weakening in recent days. Meanwhile, the supply of ETH on exchanges has fallen to its lowest level in six months, which could signal accumulation and reduced selling pressure, potentially setting the stage for a recovery attempt.

Ethereum DMI Shows the Lack of a Clear Trend

Ethereum’s DMI chart reveals a weakening trend, as the ADX has declined to 27.5 from 33.8 in the past day. The ADX, or Average Directional Index, is a key indicator used to measure trend strength. Readings above 25 typically signal a strong trend, while values below 20 indicate a weak or nonexistent trend.

The downward movement of the ADX suggests that Ethereum recent trend is losing momentum rather than gaining strength, which could indicate market indecision.

Looking at the directional indicators, +DI has dropped from 17.8 to 15.7, while -DI has also declined from 22.9 to 21.5. This suggests that both buying and selling pressure have weakened, leaving Ethereum without a clear directional bias.

With -DI still above +DI, bears maintain a slight edge, but the declining ADX indicates the trend is not gaining traction. This setup points to a phase of consolidation or potential trend reversal rather than a continuation of strong bearish momentum. Until there is a clear divergence in the directional indicators or a rise in ADX, Ethereum’s next move remains uncertain.

ETH Supply on Exchanges Reached Its Lowest Level In Six Months

The supply of ETH on exchanges saw a notable shift over the past few weeks. After increasing from 10.35 million on January 19 to 10.73 million on February 1, exchange