Ethereum 's exchange reserves hit a multi-year low as investors withdraw ETH massively. With decreasing supply and a strong price action above $3,800, could this signal the start of a new parabolic phase for the second-largest cryptocurrency in the market?
Ethereum ‘s price is holding firmly above $3,800 and displaying a marked bullish recovery in recent days. This momentum comes alongside a particularly significant on-chain signal. Investors are massively withdrawing their ETH from exchanges at a rate not seen for several years.
According to data shared by respected crypto analyst Merlijn The Trader, total ETH reserves on centralized platforms have reached a new multi-year low. This accelerated outflow of tokens to self-custody solutions, cold wallets, or staking contracts demonstrates a major strategic shift. Holders are clearly adopting a long-term vision and reducing the available supply in the spot market.
This compression of circulating supply mechanically creates upward pressure on prices. Less ETH available for purchase means that constant or growing demand can drive valuations higher more quickly. For Merlijn The Trader, these on-chain movements constitute an early signal of entering a parabolic phase.
Technical analysis reinforces the bullish sentiment observed on the blockchain. Joe Swanson, trader and market analyst, has identified a triple bottom formation on Ethereum’s 4-hour timeframe, a classic pattern typically signaling an upward breakout.
This structure formed around the $3,750 support level, which bulls have successfully defended three times. A confirmed breakout above $4,000 could trigger a rapid 10% movement, propelling ETH toward $4,280 in the short term. The psychological $4,000 level represents a key resistance, but buying pressure appears to be intensifying.
Purchase volumes from large wallets are also increasing, confirming ongoing accumulation. This convergence between on-chain signals and technical patterns creates a particularly favorable setup for long positions.
StockTrader_Max, another analyst followed in the crypto community, published an analysis based on Elliott Wave theory suggesting that Ethereum has shown no signs of bearish invalidation. According to his count, the altcoin is in a configuration conducive to a major bullish extension.
The expert categorically refutes bearish narratives circulating on social media, describing certain contradictory forecasts as unfounded. His analysis points to an ambitious target of $6,000 in the coming months, representing a potential gain of nearly 58% from current levels.
This projection is based on the impulsive wave structure observed since the last major trough and on ETH’s growing relative strength against Bitcoin. The ETH/BTC ratio shows signs of revitalization, suggesting that the altcoin season could particularly favor Ethereum.
StockTrader_Max also warns investors against ambient noise and recommends focusing on factual data rather than fluctuating opinions from crypto influencers. Discipline and rigorous analysis remain essential in such a volatile market.
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