The Ethereum market is heating up: Exchange reserves are low, investors are making a strong push to accumulate ETH.

Ethereum (ETH) has broken through the $2,600 level in the short-term, thanks to the accumulation trend returning in the supply on the exchange, combined with strong capital inflow into ETH investment products, totaling 583 million USD in just one week.

ETH reserves on exchanges hit a record low amid a wave of 583 million USD flowing into ETF funds

Ethereum restarted its bullish trend on Monday, as ETH reserves on exchanges continued to plunge – from 18.72 million to a record low of 18.57 million ETH in just 24 hours. This sharp decline shows that selling pressure is weakening, while buying demand is increasing markedly.

ETH reserves on the exchange | Source: CryptoQuantAt the same time, the total amount of ETH staked has also increased by 80,000 units during the same period, reflecting the increasingly strong optimistic sentiment from investors – according to data from Beaconcha.in.

Notably, this accumulation wave occurs right after a week that recorded an inflow of capital into Ethereum investment products reaching 583 million USD – the highest ever according to CoinShares statistics, indicating growing interest from financial institutions in the largest altcoin on the market.

The buying pressure for Ethereum has been activated by a massive inflow of 528.12 million USD into spot ETF funds in the US over the past week – the highest figure since December 2024. Notably, these investment products have maintained a streak of 19 consecutive days of net inflows before pausing on Friday, due to geopolitical tensions in the Middle East causing a slight reversal in cash flow with a net outflow of 2.18 million USD.

The ETH ETF spot flow of the United States | Source: SoSoValue "The recovery momentum of Ethereum is currently backed by the story of 'digital oil' along with the solid fundamental factors of the ecosystem, such as the Pectra upgrade and the increase in stablecoin activity – with nearly 50% of the circulating stablecoins currently issued on the Ethereum network," said Mrs. Tracy Jin, CEO of the MEXC exchange.

"The new regulations related to staking and ETFs linked to stablecoins coming into effect is also a positive signal, contributing to strengthening investor confidence," she added.

Although positive signals have continuously emerged around Ethereum recently, Ms. Jin remains cautious in making her price forecast for the end of the year.

"ETH could fluctuate in the price range from $2,800 to $3,600 by the end of the year," she noted, while emphasizing that: "If the staking ETF funds and technical improvements on the network are implemented on schedule, the possibility of ETH breaking through the forecast threshold is entirely possible."

Ethereum Price Forecast: ETH Rejected at the 200-Day SMA

In the past 24 hours, Ethereum has witnessed a total liquidation value of futures contracts amounting to 134.04 million USD, according to data from Coinglass. Of this, Long positions accounted for 70.55 million USD, while Short positions were liquidated at 63.49 million USD — reflecting the strong volatility of the market.

ETH has maintained a support level around $2,500 throughout the weekend, while continuously testing the simple moving average (SMA) 200-day – which is currently acting as dynamic resistance. If ETH can break through and turn the 200-day SMA into a support zone, the second-largest altcoin in this market may aim for the important resistance area at $2,850. However, if it continues to be rejected at this level, the risk of forming a double-top pattern (double-top) – which often signals a bearish reversal – will become increasingly evident.

Daily ETH/USDT Chart | Source: TradingViewOn the contrary, if the support at $2,500 is broken, ETH needs to hold the lower boundary of the main price channel – which is reinforced by the 50-day SMA – to avoid the risk of a deep drop to the support area of $2,260-$2,110.

The Relative Strength Index (RSI) is currently above the neutral level and may test its own moving average, while the Stochastic Oscillator (Stoch) is below the neutral level. If both of these indicators cross upwards simultaneously, the bullish momentum will be further strengthened.

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