Ethereum’s availability on exchanges has been reduced dramatically to the lowest amount in nearly a decade. Exchange liquidity for Ethereum is down a staggering 37% over the past year. Not only are many of the platforms that used to offer Ethereum now gone (think Bitrex and Cryptopia), but even those that survived have slashed their Ethereum listings and trading volumes. This points to a really interesting observation about Ethereum. While it continues to grow as a platform, the core asset seems to have a smaller and smaller presence on actual trading venues. Thanks to the many DeFi and staking options, Ethereum's holders have now brought the available supply on exchanges down to 8.97M, the lowest amount in nearly 10 years (November, 2015). There is 16.4% less $ETH on exchanges compared to just 7 weeks ago. pic.twitter.com/r5957wPhLi — Santiment (@santimentfeed) March 20, 2025 Ethereum’s price movement has become a key point of interest for investors and traders. This is largely due to the substantial cut in available supply and a market landscape that is shifting right before our eyes—and not necessarily in a way that many were hoping for. And while the available supply of Ether has been cut in half, the price has held firm. Key Levels to Watch in Ethereum’s Short-Term Price Action As the amounts of Ethereum on exchanges keep falling, people are focusing more on key price levels that could serve as either support or resistance coming up soon. Now, to get a good read on those levels, you really have to look at the address space of Ethereum and the kind of cost clustering that we can see within it. More specifically, you want to look at the points within that space where significant numbers of holders amassed huge volumes of ETH. And when you do that, two levels in particular really jump out at you as being critical to keep an eye on in the near term. 1. $2,240 – Resistance Level The first level to watch is around $2,240, which is significant because it marks a key resistance point for Ethereum. At this level, 2.24 million addresses hold a combined total of 711,000 ETH. The presence of such a large number of holders at this price could create selling pressure should Ethereum approach or test this level. If the price of Ethereum reaches this point, it is likely to encounter strong resistance as these holders may choose to sell or lock in profits, especially if the price has risen significantly. A break above $2,240 would indicate strong bullish momentum, signaling the potential for higher prices in the short term. 2. $1,886 – Support Level Conversely, $1,886 marks a vital support level for Ethereum. This level is fortified by a significant number of addresses—4.26 million in total—that hold an aggregate 3.84 million ETH. With an abundance of holders that have accumulated Ethereum at or around this price point, it’s next to certain that this level will serve as a cushion if the price starts to slide. A breakdown below the support level at $1,886 could potentially trigger a servo effect whereby the holders of these addresses sell off a significant quantity of their ETH, causing the price to plunge even further. On the other hand, if Ethereum holds above $1,886, it signals to the market that there is a strong base of demand and plenty of upward momentum. Kısa vadede Ethereum'da takip edilmesi gereken 2 önemli seviye hangisi mi? İşte burada adreslerin maliyet kümelerine bakmanın doğru olduğunu düşünüyorum. Bu doğrultuda karşımıza çıkan 2 önemli seviye ise; 2,240 (2,24M adres ve 711K Eth hacmi) 1,886 (4,26M adres ve 3,84M… pic.twitter.com/fpFYTzIIdq — Burak Kesmeci (@burak_kesmeci) March 20, 2025 Ethereum’s short-term price action hinges on these two levels: $2,240 as resistance and $1,886 as support. Traders are watching closely for even the slightest movement around these two points, since the way the price reacts to them will give us a reading on just how strong (or weak) market sentiment is right now. And that, in turn, will give us some clue as to what kind of price trend, if any, Ethereum can expect in the near future. Ethereum’s ETF Flows Show Signs of Weakness Although on-chain metrics for Ethereum indicate a solid, committed base of long-term holders, the performance of Ethereum spot exchange-traded funds (ETFs) tells a different story. On March 20, Ethereum spot ETFs experienced net outflows of $12.4 million, this constitutes the 12th consecutive day of net outflows. This long stretch of outflows could be a sign of diminishing confidence from institutional investors. If that’s the case, it puts an interesting spin on the narrative that is otherwise innocuous. On March 20, the total net inflow for Bitcoin spot ETFs was $166 million. The Bitcoin spot ETF with the highest single-day net inflow yesterday was BlackRock's IBIT, with a single-day net inflow of $172 million. Ethereum spot ETFs saw a total net outflow of $12.4093 million… — Wu Blockchain (@WuBlockchain) March 21, 2025 The Ethereum ETFs experiencing heavy outflows could mean that large, sophisticated investors are second-guessing the near-term price of Ethereum. When you look at the presented evidence and weigh it all together, retail investors are currently your best bet in terms of someone holding onto Ethereum for the long haul. That said, if you happen to be an institutional investor looking for a reasonable risk/reward profile in the immediate future, Ethereum probably isn’t it, given the current market environment and a few too many unknowns. It is striking that the divergence in sentiment between retail investors and institutional investors exists at all. It suggests that Ethereum’s price is underpinned by retail investor demand, at least for the time being. Meanwhile, it appears that institutional investors may be waiting to see clearer, more reassuring signals of overall market stability before making a fresh re-entry into the crypto space. A Confluence of Factors Impacting Ethereum’s Price Ethereum’s supply on exchanges has dropped, and the all-important price levels of $2,240 and $1,886 could influence price action in the near term. But why? Well, frankly, there are lots of reasons. Here’s a quick rundown: – Ethereum plays a big role in DeFi, and its utility is more impactful than ever. – The market’s short-term outlook is hazy at best, showing no real direction. – The ETFs on the space have been seeing negative inflows as of late. Ethereum is dealing with these forces, and, as it does, traders will hone in on the aforementioned price levels, peering into the mystique of sentiment as they try to ascertain what is actually happening. Is it omens for either institutions or retail traders that the two are so clearly on different pages? For the moment, all is well. Ethereum’s balance sheet is more or less fully loaded with positive long-term indicators, which is, of course, exactly what traders who are net long Ethereum would love to see. To conclude, even though Ethereum’s on-chain performance indicates that there is a solid long-term commitment from holders, the ETF outflows that we are seeing right now, along with the overall market sentiment, may cause some price fluctuations in the short term. What will happen at the $2,240 resistance and the $1,886 support level over the next few days will be very telling. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: nexusplexus/ 123RF // Image Effects by Colorcinch
