Ethereum, the largest altcoin by market value, is not performing as expected despite Bitcoin‘s recovery. As the home to a significant portion of smart contracts, Ethereum is critical. Today, most actively used crypto-centric platforms operate on the Ethereum network. So, what is Ether waiting for while most altcoins have rallied massively?
On-chain data indicates more ascension for the altcoin king due to all-time lows in exchange balances and continued increases in staking deposits. Ether’s technical charts show that if buyers can rise above the resistance between $1,900 and $2,000, the asset could reclaim $3,000.
According to Glassnode data, exchange balances for ETH have shown a sharp drop of 12.6% to a new low in the last 30 days. A decrease in the supply on crypto exchanges, which implies fewer available assets for sale, is considered a bullish sign.
The net flow volume of deposit and withdrawal transactions shows a sharp increase in withdrawals since early June, amidst regulatory pressure on Binance and Coinbase.
Since the Shapella upgrade in April, the supply of ETH locked in staking contracts has significantly increased. Currently, over 23 million ETH, representing 19.1% of the total supply, has been staked. Glassnode’s data shows that around 30% of the ETH supply, including decentralized finance and staking contracts, is locked in smart contracts, up from 25.5% in early 2023.
ETH Price Review Chart
Increases in withdrawals from exchanges and deposits in smart contracts, which reduce the liquid supply, are positive for the price of ETH. Moreover, the supply in circulation continues to decrease in the long term due to the current burn rules.
ETH price faces resistance around the horizontal level of $1,900. The pair has seen higher lows between $1,900-2,000, which have acted as technical and psychological resistance levels since November 2022, according to the ascending triangle formation.
A break above $2,000 could quickly push ETH towards the breakout levels around $3,000 in 2022. The targets of the rising channel formation also coincide with these levels.
The ETH/BTC pair is trying to find support around the lowest level of 2023 in Bitcoin terms, around 0.06255. If sellers push the price below this level, sales could continue down to the support of 0.05689 BTC.