Ethereum’s on-chain movements show that bullish pressure is developing around Ether, as exchange balances have reached an all-time low and staking deposits continue to rise.
Eth technical indicators indicate that the commodity can recoup $3,000 if buyers can break through the resistance zone between $1,900 and $2,000.
According to Glassnode data, ETH exchange balances have reached a new low of 12.6%, decreasing substantially in the last 30 days. Reduced supply on exchanges is usually a bullish indicator because it indicates there are fewer tokens available for sale.
The netflow volume of exchange deposits and withdrawals reveals a sharp increase in withdrawals at the start of June, owing to a regulatory crackdown on Binance and Coinbase.
Withdrawals were prompted by investors alarmed by centralized exchanges, so the statistics should be interpreted with caution.
However, the amount of withdrawals and bullish price movement are comparable to November 2022 levels, when ETH immediately rose over 33% in response to an equal decrease in exchange holdings.
At the same time, the supply of ETH trapped in staking contracts has increased dramatically since the Shapella upgrade in April. Over 23 million ETH is now deposited in staking contracts, accounting for 19.1% of the total supply.
According to Glassnode data, approximately 30% of ETH supply is locked in smart contracts, which include decentralized finance and staking contracts, up from 25.5% at the beginning of 2023.
Increased withdrawals from exchanges and deposits in smart contracts benefit the price of ETH by reducing its liquid supply.
At $1,823.09, ether’s price broke above the 50-day moving average, signaling a bullish breakout.
The ETH/USD pair is currently encountering resistance near the $1,906 horizontal level. According to the ascending triangle pattern, the pair has posted higher lows since November 2022, with the $1,900-$2,000 level acting as technical and psychological resistance levels.
A break above $2,000 might catapult ETH swiftly toward the 2022 breakdown levels of approximately $3,000. The bullish ascending channel pattern’s targets likewise coincide around these levels.
The ETH/BTC pair is attempting to find support near the 2023 lows of 0.06255 in Bitcoin terms. If sellers force the market below this level, bearish targets of 0.05689 BTC will be revealed.
Nonetheless, the relative strength index gauge for the ETH/BTC pair is displaying oversold values, indicating that a pullback is imminent.
Perpetual swap traders pay funding rates on open short or long positions, depending on asset demand. When the demand for short orders exceeds the demand for long orders, shorting becomes more expensive, forcing short traders to pay longs.
On the ETH/USD pair, there is a probability that the price will draw back toward the bottom of the ascending triangular pattern to about $1,680.