On-chain data indicates that the circulating supply of Ethereum available for trading is still decreasing. The continued decline in exchange holdings suggests that more ETH is being transferred out of trading platforms, easing short-term selling pressure. Meanwhile, large holders are still accumulating positions near the current price.
Whales continue to accumulate shares near low levels.
The article mentions that a whale's average purchase price for ETH was approximately $1672, close to the current market price. This suggests that some large funds have not exited despite the recent weak market performance, but instead have chosen to continue building positions.
From a market perspective, this type of buying usually reflects that there is still support below, but it does not mean that the price has reversed.
Exchange outflows continue
Exchange flow data shows that outflows have consistently exceeded inflows recently. Since exchange holdings typically represent liquidity more readily available for selling, a decrease in reserves often indicates reduced short-term selling pressure.
If this trend continues, the spot supply of ETH may tighten further. However, reduced supply does not necessarily lead to a price increase; the price will still depend on whether buying pressure can break through the resistance level above.
$1700 has become a temporary support level.
ETH previously rebounded to around $1800 but failed to hold, and the upward momentum subsequently slowed again. At the time of observation, the price was around $1703, still holding above the key $1700 area.
In terms of indicators, the Relative Strength Index (RSI) has rebounded from the oversold zone to 38.02, but it remains below the neutral line of 50, indicating that buying pressure has recovered somewhat compared to the previous period, but the strength is still insufficient. The Parabolic SAR indicator has turned below the price, showing that short-term conditions have improved compared to before.
Binance's liquidation heatmap shows a significant concentration of liquidity around $1720 to $1730; below that, $1665 to $1675 is another clear area of high liquidity. If ETH fails to recover $1800, the price may continue to fluctuate within these ranges.
