Bull Radar: Exchange-held ETH Hits All-Time Low

The evolution of the Ethereum chain shows the tremendous pressure around Ether as its exchange rate reaches an all-time high and deposits continue to rise. The technical chart of Ether suggests that the asset can recover $3,000 if the buyers can break above the resistance between $1,900 and $2,000.

ETH Is Making A Downward Trend All The Time

The exchange rate for ETH hit a new low of 12.6%, falling sharply over the past 30 days, according to data from Glassnode. A decrease in supply and exchange is usually a bad sign, as it means fewer tokens are available for sale.

The online amount of deposits and withdrawals from the exchange shows a significant increase in withdrawals in early June between the regulatory system on Binance and Coinbase.

The data should be taken with a grain of salt, as investors are likely to experience setbacks from mid-term fluctuations. However, the magnitude of the pullback and price action show similarities to the November 2022 levels, when ETH quickly shed more than 33% following the FX equity decline.

At the same time, the supply of ETH locked in staking contracts has increased significantly since Shapella was promoted in April. Currently, more than 23 million ETH are deposited in the staking contract, representing 19.1% of its total. Data from Glassnode shows that almost 30% of ETH is locked in smart contracts, including unregulated funds and contracts, from 25.5% at the beginning of 2023.

The increase in liquidity from exchanges and deposits in smart contracts is good for the price of ETH, as it reduces its consumption. ETH/USD price analysis The price of Ether broke above the 50-day moving average at $1,823.09, making the trend clear.

The pair ETH/USD is currently facing stability around the level of $1,906. The pair has recorded a high decline since November 2022, with the $1,900-$2,000 level acting as a technical and psychological resistance level, similar to an ascending triangle pattern.

A break above $2,000 could quickly boost ETH to the 2022 breakout level around $3,000. The ascending channel objectives also fall within these frameworks.

ETH/BTC is looking to support support around the 2023 lows of 0.06255 in Bitcoin terms. If traders push the price below this level, a bearish target of 0.05689 BTC will be revealed. Nevertheless, the indicator of relative strength shows an oversold reading for the pair ETH / BTC, suggesting that it is likely to pull back.

The exchange rate for ETH exchange contracts has been rising every month, acting as a warning signal for those who bought back.

Variable traders always pay cash on their open short or long positions, depending on the demand for the asset. When the demand for short orders exceeds the demand for long orders, short selling becomes more expensive, leading customers to short orders to pay for long purchases.

It is possible that the price will return to the bottom of the rising triangle in the ETH/USD pair at around $1,680.

Nevertheless, chain movements and market indicators give bulls a big opportunity in short-term and short-term downtrends.

Bitcoin price action and the ability of BTC buyers to support the $30,000 level will also play an important role in supporting the Ether fire.