Ethereum (ETH) price faces a critical resistance zone as market dynamics shift. On-chain data reveal reduced exchange supply and renewed ETF staking efforts.
Ethereum on Exchanges Falls to Historic Lows
Ethereum’s supply on exchanges has reached its lowest level ever, according to trader Merlijn The Trader. A shrinking exchange supply typically suggests that investors are holding their ETH rather than selling, often a bullish sign. The timing coincides with a 3% price jump on Tuesday, fueled by Fidelity’s ETF staking proposal.
Before the SEC approved U.S. spot Ethereum ETFs in July 2024, issuers removed staking from their filings amid regulatory pushback under then-Chair Gary Gensler.
However, with Donald Trump in office and Mark Uyeda leading the SEC, the agency’s stance on staking is changing rapidly.
Nate Geraci, President of the ETF Store, believes spot Ethereum ETFs could eventually outpace Bitcoin ETFs in popularity if staking is allowed.
Other issuers, including Grayscale and 21Shares, have also submitted filings to enable staking in their ETH ETFs.
ETH Price Faces Key Resistance Amid Investor Accumulation
Ethereum’s price is approaching a major resistance zone between $2,250 and $2,610, where 12.28 million addresses collectively hold over 65 million ETH, according to Ali Martinez.
This level represents a significant hurdle for bulls, as prior accumulation zones often act as psychological barriers for traders.
MVRV pricing bands suggest Ethereum’s realized price is at $2,060, marking an important support level.
If ETH price fails to hold above this mark, the next key support sits at $1,440. Meanwhile, large transactions are raising concerns about potential selling pressure.
Crypto trading firm Amber Group recently transferred 20,000 ETH (worth $37.34 Million) to Binance, OKX, and Gate.io. Such transactions often precede selling pressure, adding to bearish risks in the short term.
Ethereum Price at a Crossroads
Ethereum’s near-term trajectory depends on multiple factors, including ETF staking approval, market sentiment, and technical resistance at $2,250.
While reduced exchange supply may support price stability, whale transactions and macroeconomic trends could fuel volatility.
A breakout above $2,250 could fuel bullish momentum, while failure to hold above support levels could extend the current downtrend.
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