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Ethereum continues its recovery phase, with the asset now trading above $1,800 after gaining approximately 15.3% over the past two weeks. Despite concerns from investors and a drop in public enthusiasm, ETH seems to have shown resilience..
The asset’s latest movement reflects renewed buying interest, and some on-chain indicators are pointing to potentially bullish momentum ahead. One of those indicators involves the supply of ETH on exchanges.
Declining Exchange Supply Signals Reduced Selling Pressure
A recent analysis by Amr Taha, a contributor to CryptoQuant’s QuickTake platform, points to a significant decline in Ethereum’s Exchange Supply Ratio on Binance — a metric that tracks the amount of ETH held on the platform relative to its circulating supply.
According to Taha, this ratio has now reached a multi-week low, signaling that more Ethereum is being pulled off Binance, potentially to cold storage or decentralized finance (DeFi) protocols.
Taha explains that this decline in the exchange supply ratio historically indicates reduced sell-side pressure, as users often withdraw assets when they plan to hold or deploy them in alternative protocols rather than sell.
The development is particularly notable on Binance, which remains the largest crypto exchange by volume and liquidity. As such, changes in its ETH reserves can often reflect broader market sentiment shifts.
To illustrate this trend, Taha points to a similar case in April, when a sharp reduction in ETH’s exchange supply on Binance was followed by a price rally from below $1,700 to roughly $1,950, a 14% move within days.
The analyst suggests the current pattern may be setting the stage for a similar development, especially given what’s happening on the derivatives side of the market.
Ethereum Short Squeeze Setup Emerges Around $1,900–$2,000
Heatmaps tracking liquidations indicate the presence of a growing cluster of short positions between $1,900 and $2,000. According to Taha, this layer of aggressive short interest creates a zone of potential upward price movement if those positions are forced to close in a short squeeze.
Particularly, if ETH climbs into that range, the resulting liquidations could amplify upward momentum. In this scenario, the cost to move ETH’s price higher decreases as the available supply on exchanges continues to decline.
Taha notes that the combination of falling exchange balances and rising short interest creates favorable conditions for what he describes as a “liquidity hunt” — a situation where price is pushed to trigger liquidations and capitalize on trapped positions.
With ETH’s current price momentum and the reduction in sell-side resistance, the $1,900 to $2,000 range is increasingly becoming a focal point.
Featured image created with DALL-E, Chart from TradingView
Meet Samuel Edyme, Nickname – HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.
Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.
Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.
When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)
Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.
In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.
Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think’s probably unfeasible, I’ve done already a hundredfold.”
PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
