Ethereum has reclaimed the $1,800 support level after bouncing off the $1,500 demand zone, and is now testing a major descending trendline on the daily chart. The upper boundary sits near $2,000, where the 100-day moving average also adds resistance. Meanwhile, exchange reserves have dropped to roughly 15.3 million ETH — the lowest in years — signaling that investors are moving coins to self-custody or long-term storage.
Technical setup: trendline test and key levels
ETH is pressing against a descending trendline that has capped price action for months. The 100-day moving average converges near $2,000, reinforcing that level as immediate resistance. Above that, the next major resistance zone lies between $2,000 and $2,200, where the 200-day moving average also sits. A confirmed breakout above the channel and a sustained move beyond $2,200 would signal a structural shift in trend.
On the 4-hour chart, Ethereum formed a double bottom near $1,500 and has been climbing inside an ascending channel with higher highs and higher lows. The price recently reached the channel's upper boundary around $1,950, where sellers stepped in and caused a modest rejection. If ETH holds above $1,800, the pullback looks like routine profit-taking. A breakdown below $1,800, however, could trigger a retracement to $1,720 or the $1,620–$1,640 area.
Exchange reserves hit a multi-year low
Ethereum exchange reserves have declined steadily to approximately 15.3 million ETH, the lowest level in years. The trend suggests investors are withdrawing coins to self-custody or long-term storage, reducing the available supply on exchanges. Lower available supply can support price if demand remains steady, but it also means less liquidity for large trades.
The timing isn't great for bears: with reserves shrinking and ETH defending a key support zone, the market is watching whether the $2,000–$2,200 resistance can be broken. If not, the $1,800 level becomes the first line of defense, and losing it would expose the $1,500 demand zone again.
What to watch next
The immediate question is whether Ethereum can push through the descending trendline and the $2,000 resistance. A daily close above $2,200 would confirm a breakout and likely shift sentiment bullish. On the flip side, failure to hold $1,800 would put the $1,500 area back in play. With exchange reserves at historic lows, the supply squeeze could amplify any move — in either direction.
