The Ethereum price began a decent rise above $1800 levels and further broke the crucial resistance at $1880. As the levels crossed the $1920 mark, the bears got activated and quickly slashed the price back below $1900. Although it faced a downward correction to $1885 levels, the ETH price still carries the possibility of bouncing back above $2000 in the coming days.
Ethereum Exchange Reserves Dries-Up
The balance on the exchanges is one of the important factors that point out market sentiments. The rise and fall of the balance reserve levels indicate whether the trader is willing to accumulate or liquidate high holdings, which further impacts the value of the token. In a recent update, the reserve balance of ETH on the exchanges dropped to a 5-year low.
One of the top analysts, Lark Davis, recently shared a chart mentioning the drying reserve balance over the exchanges. As per him, only 17.8 million ETH are left over from the exchanges now. Whenever the trader wishes to sell his/her holdings, he/she tends to transfer them back to the exchanges, and this is when the balance on the exchanges soars.
However, in the present case, the balance has dropped heavily, indicating the traders are willing to hold the token for long-term gains. Apart from this, there is also a bullish trend line forming, with support near $1880 in the short term. As the ETH price continues to trade above the major support at $1880 and the 100-D SMA levels, the possibility of rebounding and hitting the immediate resistance at $1,920 is pretty high.
Therefore, once these levels have been secured tightly, the next stop could be above $2000, as the major resistance resides around $2040, which may lift the price close to $2120. Else, in case of a bearish pullback, the price may test the crucial support at $1885, and if it fails to hold, a couple of lower targets at $1870 and later at $1815 could be tested. Moreover, if it fails to hold here, a downtrend below $1800 could also be on the horizon.
