Ethereum continues to hold the profits of its recent breakouts, trading around $3,730 after lifting its strong foot from the $2,500 range. The rally pushed ETH into a critical technology zone, but on-chain metrics provide insight into market sentiment. Despite the sharp movements, we still have no overwhelming signs of happiness.
Technical Analysis
Shayan Market
Daily Charts
On the daily charts, ETH has breached the key resistance at $3,300 before consolidating just below the $4,000 level. The assets are firmly above both the 100-day and 200-day moving averages, starting to curl upwards following bullish crossovers around the $2,500 mark, suggesting a strong uptrend structure.
The next major level of interest is the previous high of $4,100, but the negative correction can be found between $3,300 and $2,900.
Additionally, the daily RSI remains rising, hovering at about 78. This indicates excessive conditions. That said, the sharp turnaround hasn’t continued yet, meaning that the momentum remains the same for now. If buyers can maintain pressure without major revisions, ETH can build the foundation needed to continue towards the highs prior to December 2024.
4-hour chart
On the 4H chart, the ETH forms a descending triangle just below the resistance, pushing a series of low highs into the $3,800 zone. The RSI has bounced back from the 50th level and is currently located near 56, showing a mild recovery in momentum after a recent pullback. This structure suggests that breakouts can cause another wave higher on top of the downward trend.
However, if the pattern is divided into downsides, immediate support for watching is in the $3,500 range. The following moves will revive the $3,200 zone: For now, volatility is compressed and there could be a critical breakout in either direction.
On-Chain Analysis
Ethereum Exchange Reserve
Ethereum Exchange Reserve continues to decline and is currently sitting at a multi-year low of around 19.3 million ETH. This sustained downward trend reflects investors and institutions increasingly moving ETH from centralized exchanges, either to cold storage, staking platforms, or debt protocols. Historically, such a decline in the supply of exchange ownership is often consistent with bullish price trends. This is because it shows lower sell-side pressure and stronger beliefs among holders.
What is noteworthy is that this reserve drawdown continues, even as ETH surges to $3,800, indicating that holders are not in a hurry to earn profits at the current level. Instead, this behavior reinforces the idea of long-term accumulation and reduced sales enthusiasm, especially during the major breakout phase. As long as this preparation continues downwards, it adds strong fundamental support to the bullish structure of Ethereum macros.
