Ethereum prices have risen nearly 20% over the last seven days, making it easy to break through the $4,000 mark viewed. Currently trading at $4,310, ETH prices are just 11.7% below the all-time high of $4,878.
But that peak is closer than you think, and there are two powerful cohorts lined up that can push it.
Spot buyers keep Ethereum supply firmly
One of the most important metrics to watch during a powerful uptrend is the exchange reserve, the total amount of ETH held in the central exchange. High reserves increase the chances of sales pressure. If they are low, supply is tight and a surge in demand could quickly boost prices.
On July 31st, Ethereum’s Exchange Reserves reached an all-time low of ETH of 18.72 million. As of August 12th, despite the sharp climbs of ETH, they remain at 1885 million ETH, close to that level. It shows us something important. Even as Ethereum prices are pushed to months’ highs, the buyer seller fight is skewed into the former.
Please note that there is an aggressive sales event. However, low exchange reserves mean that buyers are quickly overtaking sellers.
Historically, ETH prices have struggled to maintain meetings when booking spikes. The fact that reserves are approaching record lows while prices approach breaching the final major resistance suggests sustained rights to buy from the spot market.
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Derivative traders stack positions
If the spot market is the basis, derivatives are accelerators. Open profits, the total amount of excellent futures and permanent contracts, reached an all-time high of $29.17 billion on August 9th, hovering near that level.
Why is this important? The greater the open interest, the greater the chances of cascade movement. If Ethereum prices break important resistance, they could be forced to cover a leveraged short position, causing a short squeeze that amplifies upward momentum.
Conversely, heavy leverage could also accelerate the downside if the Bulls lose control. But for now, the Spot Supply is tight and the setup prefers an upside down aperture.
The combination of record-breaking reserves and record-high interest means that both cohorts, spot buyers and derivative traders are consistent in ways that can drive a sharp upward movement.
Key Ethereum Price Levels to Watch: One Stop May Trigger a New Peak
From a technical standpoint, Ethereum is trading within a bullish continuity pattern (a rising triangle) with significant resistance of $4,468, a 2.618 Fibonacci extension from recent rallysations.
A clean break above this level will easily put a previous record high of $4,878 out of reach.
Ethereum prices have broken several times from bullish triangles towards months’ highs as Fibonacci levels serve as resistance bases for trendlines in ascending order.
If Bulls clears another breakout zone, $4,468, the next Fibonacci target is close to $4,893, essentially marking a fresh record. On the downside, immediate support is $4,043. Losing it can create a deeper pullback risk.
Post Ethereum Exchange reserves sink – more pressing than ever? It first appeared in Beincrypto.
