Ethereum is consolidating just under $2.5K after a sharp rally from $1.9K, with the daily chart showing a broken descending channel and reclaimed moving averages. Falling exchange reserves point to a shrinking supply of ETH available to sell, but a decisive break above or below $2.5K will decide whether the rally extends or fades.
Ethereum is holding below $2.5K after breaking out sharply from the $1.9K area, with the technical structure improving as exchange reserves keep declining. The $2.5K zone is proving a tough ceiling, and how ETH resolves it will determine whether the rally continues or the move turns into a bull trap.
ETH breaks its descending channel
The daily chart shows ETH broke above the descending channel that had capped price for months, reclaiming $1.9K before accelerating through $2.1K toward $2.5K. The breakout also pushed ETH above both the 100-day ($1.9K) and 200-day ($2.05K) moving averages, which are now sloping upward and suggest the broader bearish structure is losing momentum.
Ether is now trading inside a resistance zone around $2.45K-$2.55K, an area that has repeatedly attracted selling pressure in recent sessions. A daily close above this region would strengthen the bullish case and could open the way toward the next resistance near $3K.
On the downside, the first support sits around $2.1K, a level that previously acted as resistance before being reclaimed. Below that, the $1.9K zone marks the breakout's starting point; a sustained move under it would weaken the bullish structure.
Shorter-term chart shows a tight range
The 4-hour chart shows ETH pushed above $2.3K after the vertical breakout from $1.9K before continuing toward $2.5K, and it has since been moving sideways within a relatively tight range, with $2.5K acting as the upper boundary. This consolidation can be read constructively as long as ETH holds the higher levels set during the breakout.
A notable support on this timeframe lies around $2.2K-$2.3K, coinciding with a bullish order block where the latest acceleration began. The next support sits around $2.05K-$2.1K, and holding this area matters because a drop below it would also push ETH under the $2K psychological level.
Meanwhile, the 4-hour RSI has pulled back from overbought territory and is hovering around 50, consistent with a cooling-off phase rather than a momentum breakdown.
Exchange reserves keep falling
ETH held on exchanges has declined steadily from above 21M ETH in 2025 to approximately 14.9M ETH at the latest reading, with the decline becoming steeper over the past couple of months. Over the same period, ETH's price recovered from $1.5K to approximately $2.4K.
The decline in exchange reserves has persisted even through periods of significant price volatility, which makes the current supply backdrop more constructive than if reserves were rising alongside the rally. Sustained withdrawals can reduce readily available sell-side supply if the trend reflects longer-term accumulation or a move into self-custody.
Source: CryptoPotato
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