Why ETH Still Looks Weak

Exchange reserves kept dropping, which may point to tighter supply, while price action stayed weak after another rejection below a key resistance zone.

Ethereum Exchange Reserves Keep Falling as Supply on Trading Platforms Hits New Lows

Ethereum reserves held across exchanges continued to decline, according to a chart shared by James Easton using CryptoQuant data. The chart showed exchange reserves falling from above 22 million ETH in 2023 to near 15 million ETH by early 2026, marking a sharp and extended drawdown in the amount of Ether available on trading platforms.

Ethereum: Exchange Reserve, All Exchanges: Source: CryptoQuant

The move suggests that more ETH is leaving exchanges than returning to them. Usually, that points to coins being moved into private wallets, custody solutions, or staking rather than being kept ready for immediate sale. Because of that, some traders view falling exchange reserves as a sign of tighter liquid supply.

James Easton said whales are stacking and staking, framing the trend as bullish for Ethereum. Still, the chart itself only confirms the decline in exchange balances. It does not show who moved the coins or whether the outflows came mainly from long term holders, large investors, or staking related transfers. Even so, the scale of the drop stands out and may remain a key metric for traders watching Ethereum supply condition

Ethereum Stays Under Pressure as Rejection at Supply Zone Keeps Downside Risk in Focus

Ethereum remained in a weak technical position after failing to break through a key supply zone, according to a chart shared by CyrilXBT. The daily chart showed ETH trading well below its 200 day exponential moving average, with the broader trend still tilted lower after a steep drop from above $4,000 to the $1,700 area.

ETHUSDT 1D Chart: Source: TradingView,CyrilXBT on X

The chart marked the $2,200 to $2,400 region as a supply zone where sellers stepped in and rejected the latest recovery attempt. Since then, price has drifted lower again, which suggests buyers have not yet regained control. The 200 day EMA near $2,766 remained far above the market and continued to act as a major ceiling.

CyrilXBT said a break below the $1,750 low could expose Ethereum to a deeper move toward the $1,400 to $1,500 area. On the upside, the chart suggested ETH would need to reclaim the $2,400 level first to show stronger recovery momentum. Until then, the setup points to continued weakness, with traders watching whether support near the recent lows can hold.