- The Ethereum price in consolidation is poised to challenge the overhead resistance of $2,142 amid significant drop in exchange reserve.
- On-chain data shows that Ethereum’s supply on centralized exchanges has dropped to 12.02%, the lowest level in recent years.
- A notable spike in daily RSI indicators to 50% without a sustained recovery in ETH price shows failed attempts from buyers to drive a higher rally.
Ethereum, the smart contract giants, witnessed a bullish uptick of roughly 2% on Tuesday, to reach its current trading value of $2,033. Despite the intraday gain, the daily candle shows overhead supply pressure with a long wick rejection candle as the geopolitical tension escalated between the U.S. and Iran again. However, the Ethereum price extends its consolidation within a narrow range of $2,142 and $1,844, awaiting its next breakout.
ETH’s Exchange Supply Hits Multi-Year Low Amid Rising Staking Demand
On Tuesday, March 10th, the crypto market witnessed a surge in buying pressure which pushed its market cap to $2.38 trillion, with an intraday gain of 1.5%. Similarly, the Bitcoin price jumped 2.15% and Ethereum coin surged 2% to trade at $2,142.
However, the digital assets witnessed a renewed selling pressure during the late marked hours, evidenced by the long-wick rejection in ETH’s daily candle. This downturn followed reports that U.S. intelligence had detected naval mines in the Strait of Hormuz.
While the immediate geopolitical jitters have stalled ETH’s recovery at key resistance level, the on-chain data shows that the percentage of Ethereum’s total supply in centralized exchange has plunged to 12.02%, its lowest level in recent years.
This metric is often coincided with bullish price action as less ETH available on exchange suggests less tokens available for immediate selling. The constant outflow suggests that investors are moving their ETH to self-custody solutions, staking rewards and prolonged approaches of HODLing.
In addition, Ethereum’s staking ecosystem has recorded a fresh record as more than 37.46 million ETH which is equivalent to around 31.03% of the circulating supply is now committed to staking protocols. Historically, such contractions in readily available exchange supply have often paved the way for strong upward movement.
Ethereum Price Coiling to Unleash Major Breakout
By press time, the Ethereum price trades at $2,039, registering an intraday gain of 2%. This uptick pushed the ETH coin close to overhead resistance of $2,142— a level that has limited ETH’s recovery in a narrow range.
Over the past, the Ethereum price has resonated strictly within two horizontal levels of $2,142 and $1,800, projecting an ongoing consolidation in the daily chart. The momentum indicator RSI at 50% suggests that the market sentiment is neutral and supports a sluggish trend.
With prevailing bearish momentum recuperating during the consolidation, the coin sellers could force a breakdown below the $1,800. The post-breakdown fall may lure ETH to $1,530 floor.
On the contrary, a potential breakout from the pattern’s resistance trendline will accelerate the buying pressure. The anticipated breakout could push ETH to $2,400 before challenging the next significant resistance of the downsloping trendline.
ETH/USDT -1d ChartThis dynamic resistance drives the ongoing mid-term correction trend in Ethereum price and therefore buyers must breach it to strengthen their grip over the asset.
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Source: https://www.cryptonewsz.com/ethereum-supply-exchange-reserves-hit-low/
