Key highlights:
- Ethereum remains below key EMA resistance levels despite holding support near $1,560
- Exchange reserves continue to decline as investors move ETH off exchanges
- Coinbase Premium Index has fallen to a monthly low, signaling weak U.S. demand
Exchange reserves continue to fall
On-chain data shows that Ethereum balances held on centralized exchanges continue to decline.
Exchange outflow metrics recorded a sharp drop in reserves over the past 24 hours, indicating that investors are withdrawing ETH from trading platforms. Such movements are generally interpreted as a sign of long-term holding behavior rather than imminent selling pressure.
The continued reduction in exchange-held ETH complements the network’s rising staking activity. Together, the trends point to decreasing liquid supply across the market.
Still, demand remains the missing piece of the puzzle.
Source: Santiment
Can ETH defend its key support zone?
From a technical perspective, Ethereum remains at a critical juncture.
The asset continues to trade below major EMA levels, signaling that sellers still maintain control of the broader trend. However, the demand zone around $1,560 has so far absorbed downside pressure and prevented a deeper correction.
If buyers can defend this area and U.S. demand begins to recover, Ethereum could attempt a move toward higher resistance levels in the coming sessions.
As it stands, the market remains caught between two opposing forces: a steadily tightening supply and weakening investor demand.
Until one side gains a clear advantage, ETH may continue consolidating near current levels despite the increasingly bullish on-chain backdrop.
Source:: Ethereum Supply Dynamics Turn Favorable as Staking Rises, But Weak U.S. Demand Caps Recovery