Ethereum's Exchange Supply Ratio Drops 1.06% as Price Hits $1,813.73

Ethereum’s Exchange Supply Ratio has dropped significantly, indicating a shift in market behavior. This drop suggests that more ETH is being withdrawn from exchanges, likely moving to cold storage or DeFi platforms. At the time of reporting, Ethereum was trading at $1,813.73, up 1.06% over the last 24 hours. With reduced sell-side pressure, the market is left with less available ETH for immediate sale, which could drive the price higher in the near term as fewer coins are available to facilitate trading.

Ethereum’s network activity shows encouraging trends. The number of New Addresses increased by 32.24% over the past seven days, signaling growing investor interest. Additionally, Active Addresses have risen by 6.96%, confirming strong participation from current holders. The Zero Balance Addresses have climbed by 120.50%, showing that retail sentiment remains high. Although many investors have yet to take significant positions, Ethereum’s adoption continues to expand. The increasing number of active users supports a continued upward trajectory for ETH.

Analysis of the recent short liquidations showed that $2.15 million in total liquidations occurred, with a significant portion coming from major exchanges. If ETH breaks above $1,900, short liquidations could accelerate, fueling a potential short squeeze. Such a move would add momentum to any rally, especially if liquidity hunters force market participants to cover their shorts.

Ethereum saw significant outflows from exchanges, with a notable amount of ETH flowing out as of the time of reporting. This trend pointed to increased confidence among holders, who appeared content keeping ETH off trading platforms. With fewer tokens for sale, the setup favored further bullish continuation. Ethereum’s Funding Rate remains positive, signaling a bullish market sentiment. The number of long positions exceeds short positions, indicating that investors are confident in Ethereum’s price action. The positive Funding Rate reflects the market’s optimism, aligning with Ethereum’s potential for further price increases.

Ethereum is forming a head and shoulders pattern, with key support around $1,758 and resistance at $1,836–$1,850. If Ethereum breaks through this resistance, the price could target $2,000, marking an 8.9% potential gain. The volume trend is increasing, supporting the likelihood of a breakout. If Ethereum surpasses this critical resistance, it could trigger a sharp rally towards $2,000. The head and shoulders pattern suggests a bullish continuation if the neckline is breached.

Conclusively, ETH’s Exchange Supply Ratio decline, strong network activity, and liquidity pool formations point to a bullish outlook. The head and shoulders pattern and increasing short liquidations support the likelihood of a breakout toward $2,000. With a positive Funding Rate and reduced sell-side pressure, ETH is positioned for continued upward momentum, potentially reaching higher targets in the near future.