Ethereum (ETH) has proved critical of the $2,500 mark that analysts see as key support. Ethereum’s current value, according to Crypto analyst Ali, puts it on the lower boundary of an upward sloping channel which indicates a potential reversal to move within the range of the channel’s upper bound.
Suggesting a potential 150% price gain, Ali remarked,
“If this level holds, we might see $ETH aiming for the channel’s upper boundary near $6,000.”
Ethereum Trading Within Upward-Sloping Channel
Ethereum price action is confined within a defined upward-sloping channel. The lower boundary, identified between $2,150 and $2,450, serves as a support zone, while the mid-line provides intermediate resistance around $3,350 to $3,750.
The upper boundary, extending to $4,750-$5,250, marks a possible target for a bullish rally. This technical structure offers key reference points for investors tracking Ethereum price movements.
The asset’s ability to hold above $2,400 could signal potential upward momentum, aligning with the support levels outlined in the channel. However, breaking below this range might suggest further bearish pressure. For now, bulls appear to be defending the support zone, keeping a broader bullish outlook intact.
Increased Withdrawals from Exchanges
On-chain data showed 300,000 ETH ($760 million) was withdrawn from exchanges in the last week. This means investors see the recent price drop for Ethereum as a good time to start buying. Large outflows usually shrink the amount of supply on exchanges which may lower the selling pressure.
The data indicates that a portion of these outflows may have been directed toward staking protocols. The total amount of staked Ethereum grew by about 130,000 ETH during the same period. This reflects increasing interest in staking, driven by Ethereum’s transition to proof-of-stake (PoS).
Ethereum’s Recent Price Decline and Staking Developments
ETH price has been under pressure throughout October, falling from above $2,700 to approximately $2,480 by the month’s end. This decline coincided with increased withdrawals from exchanges. Mainly attributed to accumulation and staking activities.
Additionally, data from SoSoValue highlighted a negative net inflow of $19.16 million on October 25. This further emphasized the ongoing trend of Ethereum being moved off exchanges.
In other news, RD InnoTech, part of the Hong Kong Monetary Authority’s Stablecoin Issuer Sandbox, has announced plans to launch a Hong Kong Dollar Stablecoin (HKDR) on the Ethereum network.
