Ethereum is trading below $2,700, struggling to build upward momentum as rising exchange balances and weaker institutional inflows point to more cautious positioning among investors. The cryptocurrency has been consolidating near this level, with profit-taking accompanying the recent price action.
Data from CryptoQuant shows that Ethereum exchange reserves have increased by roughly 125,000 ETH since Friday. This metric tracks the amount of ETH held in exchange wallets, and a rise can indicate that holders are preparing to sell, particularly after a price recovery. However, deposits alone do not confirm that those tokens have been sold.
Santiment data also revealed more than $222 million in realized profits on Friday, though profit-taking has since eased, suggesting that selling activity has moderated from that peak. The Coinbase Premium Index, which measures the price difference between Coinbase and other exchanges, fell to -0.0483, its lowest reading in nearly two weeks, indicating softer US buying demand.
US spot Ethereum ETFs have shown signs of weakening demand, with net inflows of $17.1 million on Monday followed by a net outflow of $2.80 million on Tuesday, according to CoinGlass. This suggests that institutional demand is providing less immediate support, and investors may be reducing exposure ahead of upcoming US inflation and labor market data scheduled for Wednesday and Friday.
Geopolitical uncertainty is also adding pressure. US-Iran peace talks remain stalled after President Donald Trump rejected Iran's ceasefire proposal, while the US 10-year Treasury yield has risen by approximately 70 basis points over the month. Higher yields and expectations of tighter monetary policy can make conditions more challenging for cryptocurrencies, particularly when investors are already taking profits.
Despite these headwinds, Ethereum's daily chart remains constructive. The asset continues to trade above its key exponential moving averages, and the Relative Strength Index stands at 61, with the Stochastic oscillator around 71. Both readings are supportive, though they do not guarantee a breakout.
Immediate support lies between $2,612 and $2,626, combining the 20-day EMA with a nearby horizontal level. A break below that area could bring $2,544 into focus, followed by the previous consolidation floor near $2,431. A deeper decline might expose the 100-day EMA around $2,275, with additional support at $2,172 and $1,961.
On the upside, the first major hurdle is $2,786. A daily close above that level would strengthen the case for a move toward $2,894 and potentially $3,177. Until buyers clear this resistance, consolidation remains the prevailing pattern.
ETH traders also saw $56.64 million in liquidations over the past 24 hours, including $32.24 million in short positions, highlighting elevated volatility around the current price range. The larger short-liquidation total shows that traders betting against ETH also faced pressure during the period.
Stronger ETF inflows or favorable economic data could support a breakout, while renewed exchange selling and rising yields could push ETH toward its nearby support zone. The market is closely watching these factors as Ethereum seeks a fresh catalyst to extend its advance.
This article is for informational purposes only and does not constitute financial advice.
