Key facts
- Ethereum is trading below $1,700, struggling to recover gains.
- Ethereum exchange reserves continue to decline, indicating accumulation.
- There are no significant spikes in deposits to exchanges, suggesting no large-scale selling preparation.
- The price has broken below February lows, invalidating a multi-month range.
- ETH is trading near $1,675 after losing the $1,800-$1,850 support zone.
Ethereum is currently trading below $1,700, experiencing selling pressure and giving back recent gains. Data from CryptoQuant indicates that the total amount of ETH held on centralized exchanges continues to decrease, a trend that has persisted following a previous rally. This decline in exchange supply suggests a long-term accumulation sentiment as investors opt for self-custody. However, the absence of significant fresh inflows onto exchanges indicates that this is not driven by preparation for large-scale selling by major holders. Despite the constructive supply dynamic, the market lacks active demand, which is preventing the reduced availability of ETH from translating into a price recovery. Ethereum has also experienced a significant technical breakdown, falling below its February lows and invalidating its multi-month trading range. The asset is now trading near $1,675 after losing the $1,800-$1,850 support zone. This breakdown places Ethereum in a weaker technical position, with the previously defended $1,800-$1,900 area now acting as resistance. The broader market structure remains bearish, with ETH trading below its key moving averages. Volume has increased during the selloff, confirming active selling pressure.