Key Takeaways
Why are Ethereum holders bullish now?
Exchange Reserves dropped 128k ETH, while Active Addresses jumped 108k, signaling accumulation and stronger network activity.
What levels matter next for ETH?
Holding $4,500 could trigger a rally toward $4,865, but slipping below may spark heavy selling pressure.
Ethereum [ETH] sentiment strengthened as Exchange Reserves fell, Active Addresses climbed, and bullish price action held above key levels.
Over the past week, ETH performed impressively, but now faces selling pressure. That pressure was absorbed by investors and long-term holders.
Exchange Reserves show accumulation
CryptoQuant data revealed that ETH Exchange Reserves dropped over the past week from 17.205 million to 17.073 million, meaning 128k ETH has been withdrawn.
Source: CryptoQuant
The aforementioned movement suggested accumulation as whales and institutions withdrew assets from exchanges into wallets. Essentially, it’s a bullish signal for ETH holders.
Ethereum Active Addresses increase
Meanwhile, another metric strengthening ETH’s bullish outlook was the rising interest among investors and its rapid adoption.
This was evidenced by CryptoQuant data on ETH Active Addresses. It surged by 108k during the past 48 hours amid the price dip.
In short, we observed strong network activity and growing investor confidence despite short-term selling pressure.
Source: CryptoQuant
ETH’s price moved from $4,433 to $4,550 during this period and traded at $4,507 at press time, up 0.35% daily. Moreover, Spot trading volume jumped 25% alongside these on-chain moves.
68.50% of Binance traders go long on ETH
Now, speaking of Derivatives, it can be observed that intraday traders were betting on long positions.
CoinGlass data, as given below, showed that the Binance ETHUSDT Long/Short Ratio reached 2.17, indicating strong bullish sentiment among traders.
68.49% of Binance traders held long positions, while 31.51% stayed short.
Source: CoinGlass
ETH price action and upcoming levels
According to AMBCrypto’s technical analysis, ETH retested the $4,500 level, which flipped into support after a breakout.
Contextually speaking, that earlier rally was fueled by a breakout above this level, and while the price retested it at press time, the setup remained bullish.
During the recent downturn, ETH faced resistance at a descending trendline. The breakout above that barrier cleared space for further gains.
Source: TradingView
