Ethereum Eyes $4,000 as Exchange Supply Hits Historic Low

Quick overview

Ethereum (ETH) has regained its footing after bouncing off the critical $2,400 support level.

This rebound has investors looking toward a potential push to the $4,000 mark, driven by key technical factors and notable on-chain activity.

Ethereum is currently trading close to $2,530, but it has a high chance of holding over $2,400. This price range has developed into a solid base that draws buyers and lowers the chance of a decline. Should this support hold, ETH may soon retest resistance levels around $2,700 and ultimately $3,000. Bulls’ ultimate aim is still the $4,000 level, which represents a significant psychological and technical turning point.

One of the most compelling developments is the sharp decline in the amount of ETH held on exchanges. Only about 5% of the total supply is currently available on trading platforms—a historic low. This trend indicates that holders are moving their assets off exchanges, likely into cold storage or long-term wallets, reducing selling pressure. Over the last month, more than one million ETH tokens have been withdrawn from exchanges, which signals strong confidence among investors and limits the immediate supply available for sale.

From a technical perspective, Ethereum is approaching key resistance around $2,900, near its 200-day moving average. A successful breakout above this zone could pave the way for further gains. Additionally, the Relative Strength Index (RSI) has recovered from oversold levels, suggesting renewed buying momentum and less risk of a short-term pullback.

While the outlook appears positive, brokers should advise clients to remain cautious. Market corrections or shifts in broader economic conditions can quickly impact crypto prices. Nevertheless, the combination of solid support, declining exchange supply, and improving technical indicators makes Ethereum a promising candidate for growth in the near term.

In summary, Ethereum’s fundamentals are aligning with a potential rally toward $4,000, but investors should stay vigilant to market signals.

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Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

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