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Ethereum has dropped 55% since its maximum of December, which reflects the broader weakness that the cryptographic market has reached amid the increased global uncertainty. Much of the recent pressure comes from the aggressive tariff policies of the president of the United States and the president of the United States and the unpredictable economic position, which have caused the confidence of investors and promoted a feeling of risk in financial markets. High volatility assets such as Ethereum have been particularly affected, with bulls fighting critical support and vendors that continue to dominate short -term prices action.
Despite the bearish perspective, the data in the chain provide a ray of hope for the long -term perspectives of Ethereum. According to Cryptoquant, Ethereum Exchange reserves have constantly decreased since 2022, a trend that suggests a continuous reduction in the supply available on centralized platforms. While this has not yet translated into an upward price action, it points to a possible supply squeeze once the demand returns.
For now, ETH remains under pressure without immediate signs of a reversal, but the reduction exchange supply could prepare the scenario for a strong manifestation if the purchase increases. Until then, Ethereum continues to trade in a fragile state, with investors closely observing support signs or more breakdown in the coming weeks.
Ethereum proves critical support as the exchange supply falls
Ethereum is testing critical demand levels as the market continues to incline bassist. After weeks of persistent sales pressure, ETH is now quoted below the level of $ 1,800, an area that many analysts see as a last defense line before deeper losses. The widest macroeconomic backdrop remains challenging, with commercial war fears and hardening financial conditions while maintaining risk assets under pressure.
Ethereum has been particularly weak since the end of February, when Bulls lost control after breakdown below $ 2,500. Since then, the price action has constantly decreased, and the hopes of a bullish cycle have vanished. The feeling of investors is fragile, and bulls have not yet shown enough strength to recover broken support levels or initiate significant recovery.
However, there are long -term potential building signs under the surface. According to superior analyst Quinten Francois, ETH’s supply in exchanges emerges. Shared through X, cryptocant data shows a significant descending trend in Ethereum that remains on centralized platforms, a sign that investors can be moving assets in cold storage, reducing the pressure on the side of the sale.
This continuous decrease in the change of change historically precedes the bullish outbreaks. Once the demand returns and consolidates the price, the thin offer in the exchanges could act as fuel for an acute rally. While current conditions remain low, the structural reduction in ETH available offers a convincing configuration for a future rebound.
For now, Ethereum must be kept above the range of $ 1,750- $ 1,800 to avoid a deeper drop, but long-term holders closely observe the time when the reduced supply meets a renewed purchase pressure.
ETH is traded under key weekly indicators
Ethereum is currently quoted below the 200 -day weekly average (MA) around $ 2,500 and the exponential average (EMA) about $ 2,250, long -term key indicators that now act as resistance to general expenses. This breakdown highlights the severity of the current correction, with bulls under strong pressure to avoid further losses. ETH is now flirting with its lowest weekly closure since October 2023, which adds to the concerns that the bearish trend could deepen if buyers cannot intervene soon.
The impulse is still weak, and the upward attempts to recover have been of short duration, since macroeconomic instability and continuous sales pressure weigh in the broader cryptography market. For Ethereum to avoid a greater inconvenience, it must maintain the level of $ 1,800: a key demand zone and a psychological threshold.
If the bulls manage to defend this level and claim the $ 2,000 mark in the next few days, it could indicate the beginning of a recovery rally. Recentrating this range would change the feeling and possibly trigger a renewed purchase interest. Until then, ETH remains vulnerable, and a closure of less than $ 1,800 could open the door to a new lower support levels, which potentially accelerate the decrease if the feeling worsens even more.
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