ethereum is experiencing a gradual recovery as its price rises above $ 3,100. This marks a 2.3% increase in last day. However, the asset remains in a state of general decrease, 3.3% decreased during the week.
While this modest rebound offers some relief, ethereum is still dealing with the effects of a general bearish trend. The current price movement has led some analysts to visit the underlying metrics in the ethereum chain to understand what may be ahead for cryptocurrency.
A key focus area are the ethereum Exchange Spot reserves. According to a recent one <a target="_blank" href="https://cryptoquant.com/insights/quicktake/679880859b74515728359764-ethereum-Reserves-on-Spot-Exchanges-and-Their-Market-Impact” target=”_blank”>analysis By Cryptoavils, a taxpayer to the Cryptocant Quicktake platform, the total ethereum reserves held in the spot exchanges have constantly decreased. This long -term trend points to a change in how market participants are managing their holdings.
Trend of ethereum Spot Exchange reserves
According to Cryptoavils, ethereum reserves in Spot exchanges have made significant changes over the years. During the 2017-2018 upward market, reserves reached their maximum, promoted by an increase in investors' interest.
The period 2020-2021 saw another substantial increase, fed by the increase in the defi ecosystem and ethereum-based projects. However, as of the end of 2021, the reserves began a strong decrease, since the great withdrawals of the exchanges became more common.
<img src="https://technicalterrence.com/wp-content/uploads/2025/01/Ethereum-Reserves-reached-minimums-of-several-years-Are-we-on.png" alt="Exchange ethereum Reserve” />
By 2023, the reserve levels reached a low point, and by 2024, these reduced levels persisted, indicating a possible shortage of supply. This reduction in reserves often indicates that the holders withdraw ethereum from the exchanges for long -term storage, instead of leaving it available for immediate trade.
As a result, the diminished supply in exchanges can create ascending pressure on prices. Cryptoavails pointed out that from 2022 onwards, as the reserves decreased, the price of ethereum began to stabilize at higher levels. This pattern suggests that low reserve levels could support more price increases, which potentially triggers a new upward trend.
eth technical analysis
From a technical point of view, ethereum has shown patterns that analysts interpret as bulls. Several prominent figures in the cryptographic community have shared their ideas.
A renowned analyst known as crypto Ceaser recently <a target="_blank" href="https://x.com/CryptoCaesarTA/status/1884203334460211343″ target=”_blank”>outstanding A rebound in the price of ethereum as a significant opportunity, expressing the opinion that cryptocurrency is undervalued and can be prepared to reach new historical maximums.
<blockquote class="twitter-tweet”>
<a target="_blank" href="https://twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” target=”_blank”>$ eth – <a target="_blank" href="https://twitter.com/hashtag/ethereum?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#Eloum bounced as expected. This was a great opportunity. Send it.
In my opinion, ethereum is strongly undervalued. I think we will see new ATH soon. pic.twitter.com/ljma1lepjo
– crypto Caesar (@Cryptocasarta) <a target="_blank" href="https://twitter.com/CryptoCaesarTA/status/1884203334460211343?ref_src=twsrc%5Etfw” target=”_blank”>January 28, 2025
However, not all analysis paint a uniformly optimistic image. Anup Dhungana, another cryptography analyst, <a target="_blank" href="https://x.com/CryptoAnup/status/1884249381265977384″ target=”_blank”>indicated A divergence between the behavior of the bitcoin and ethereum market.
While bitcoin has maintained a constant upward trend, ethereum's performance against bitcoin has been less robust, with the eth/btc torque that form lower minimums. This divergence reflects the reduced interest of investors in ethereum in relation to other assets.
According to Dhungana, the next technical support level for eth/btc can be between 0.028 and 0.026. A rebound of this level could potentially relive a broader interest in ethereum and Altcoins, racing the way for another phase of growth.
x/UiURZQfU/” alt=”ethereum Price Graph (eth) in TrainingView” />
Outstanding image created with Dall-E, TrainingView graphics
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