Is ETH ready to return to the race? Support factors for the uptrend above $2,000.

After several weeks of sluggish trading and being trapped in a downward price pattern, Ethereum is sending the first signals of a strong turnaround. As the crypto market enters a volatile phase, ETH seems to be establishing a platform for a new upward trend, with a series of technical indicators and accumulation behavior from major investors starting to align in a positive direction.

Ethereum: Strong Breakthrough

Currently, the price of Ethereum is still fluctuating within a descending parallel channel, extending from the end of 2024 until now. As of the time of writing, ETH is trading around $1,789, marking a 1.9% increase over the past 24 hours.

ETH/USDT Daily Chart | Source: TradingViewThe strong surge last night helped ETH break through the important resistance level at $1,682 — where the horizontal resistance line and the midline of the descending channel converge. This is seen as a positive signal, indicating that the short-term trend is shifting towards a bullish direction.

The daily RSI indicator has also surpassed the average threshold of 50 and is trending upwards, further reinforcing the outlook for ETH's continued recovery.

With the current technical factors, ETH may continue to extend its upward momentum towards the next resistance area at $2,087 — defined by the horizontal resistance line and the upper edge of the long-term descending channel.

Accumulation signals from whales

In addition, behavioral data on exchanges further reinforces the assessment that a strategic accumulation phase is quietly taking place. The amount of ETH held on exchanges has fallen by 3.8% in the past week, bringing the total remaining value down to $30.93 billion.

This stable capital withdrawal reflects the increasingly strong confidence of investors in holding assets outside centralized platforms – a signal often associated with expectations of market growth.

Lower reserve levels also mean a potential decrease in selling pressure, thereby facilitating the process of price bottom formation.

At the same time, the activities of Ethereum "whales" indicate a significant shift in investment strategy. In just the past 30 days, the amount of ETH withdrawn from large wallets has increased by up to 216.21%, while the amount deposited has also recorded an increase of 125.29%.

Source: IntoTheBlockNotably, in just the last seven days, the withdrawal amount has continued to increase by 34.72%, indicating that whales are actively moving assets – likely to cold wallets.

This move clearly indicates their current priority is leaning towards a long-term holding strategy and asset preservation, rather than pursuing short-term speculative opportunities.

These actions from large investors further reinforce the view that a period of Accumulation is strongly occurring at low price levels – an important premise for a new growth cycle.

Conclusion

The combination of increasing technical pressure, dwindling ETH reserves on exchanges, and strong cash flow from whale wallets is signaling a saturation phase in the market – where the downtrend could reach its ultimate limit.

Although ETH is currently still moving within a bearish pattern, initial signals suggest that the crypto market is beginning to show signs of a trend reversal – at least in the short term.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.

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