Ethereum price has shown resilience, maintaining stability above the $2,700 level while experiencing a 3% increase today. This movement follows a trend of decreasing exchange-held ETH, indicating a shift in investor behavior. Market participants continue to move their assets to personal wallets, reducing sell pressure and potentially contributing to the upward price movement.
Ethereum Price Gains Amid Increased Accumulation
According to on-chain data, Ethereum price rose 3% as exchange-held supply dropped to a record low of 6.38%. This decline reflects a trend where investors are moving ETH from centralized exchanges to cold storage, signaling long-term confidence. Analysts suggest that lower exchange supply often reduces selling pressure, allowing for price stability or upward movement.
Data from market analytics firm Santiment indicates that more than 10 million wallet addresses are accumulating ETH at key price levels. Data from analytics firm Santiment also supports the bullish outlook, as Ethereum transaction fees remain low at just $0.41. The drop from the two-year peak of $15.21 indicates reduced network congestion. This often encourages more users to participate in transactions.
Lower fees make it easier for traders and investors to move their ETH, contributing to increased adoption and potential price stability.
Source: X
Historically, low transaction fees align with periods of market consolidation, where prices are either stabilizing or preparing for an upward trend. When network costs remain manageable, new buyers are more likely to enter the market, increasing demand for Ethereum. If this trend continues, Ethereum price may sustain its current momentum.
More so, Ethereum whales have accumulated 918,506 ETH ($2.5 billion) during the recent two-week market dip. This buying spree signals strong confidence among large investors, despite Ethereum struggling below the $2,800 resistance. If whale accumulation continues, it could provide support for a potential price rebound in the coming weeks.
Institutional Inflows and Market Trends Support the Crypto Rally
Moreover, institutional inflows have played a role in Ethereum price increase. U.S. Ethereum spot ETFs recorded a net inflow of $4.6 million amid the crypto rally. This adds to the growing institutional interest in Ethereum, as Fidelity’s total net investment now stands at $1.52 billion.
Increased investment from institutional players often signals confidence in the asset’s long-term potential and contributes to market optimism.
Despite a 1.14% decline in the total crypto market cap and $282 million in liquidations over the past 24 hours, Ethereum has maintained its price stability. The asset’s ability to hold ground near $2,700, indicates ongoing demand and resilience among investors.
Technical Indicators Suggest Breakout Above $2,850
Ethereum price action suggests bullish momentum, with key technical indicators reinforcing the possibility of further gains. The asset continues to trade above the 100-hourly Simple Moving Average, signaling sustained buying pressure.
Resistance remains at $2,850, a level that has been tested but not yet broken. A successful move above this point could set the stage for Ethereum to target the $3,000 mark in the near term.
According to analyst Ted Pillows, Ethereum price action is forming an ascending triangle pattern, a historically bullish structure. The crypto rally suggests that ETH is establishing higher lows while testing a consistent resistance level near $3,971. If this pattern holds, a breakout above this resistance could trigger a significant rally, pushing Ethereum toward $4,000.
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