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In recent Ethereum news, ETH traded near $1,800 on March 31, with mounting pressure on whale wallets and declining exchange reserves fueling debate about an incoming supply shock.
As on-chain metrics point to rising accumulation and thinning supply, analysts remain divided over whether ETH can break key resistance or face forced liquidations from leveraged whales.
$229M in Ethereum Faces Liquidation Risk Below $1,787
Two large whale wallets on MakerDAO could face liquidation if ETH dips below $1,787.
According to blockchain analytics platform Lookonchain, these wallets collectively hold 125,603 ETH, worth around $229 Million.
Their respective liquidation thresholds sit at $1,787.75 and $1,701.54, posing a short-term risk if ETH closes below support.
In Ethereum news, the weekly chart shows price action hovering just above the 0.0 Fibonacci retracement level of $1,753.7, which was last tested in mid-2023.
Exchange Reserves Drop to 2-Year Low, Raising Supply Shock Concerns
Exchange-held ETH continues to decline. Data from CryptoQuant shows reserves have fallen to 18.2 million ETH, the lowest since early 2022.
On-chain analyst CryptoGoos commented on X, “There isn’t enough Ethereum for everyone… The supply shock is loading.”
Declining reserves typically reflect growing investor preference to hold ETH in self-custody, potentially reducing selling pressure.
However, the broader context includes stagnant demand and a bearish macro environment, which may limit bullish momentum despite reduced supply.
Ethereum News: Resistance Between $2,200 and $2,580 Caps Upside Potential
Ethereum must break through a heavy resistance zone between $2,200 and $2,580 to shift sentiment. Ali Martinez, an independent analyst, flagged the area as a
“major resistance wall.”
Martinez noted that 12.43 million addresses acquired 66.18 million ETH within this price range, creating a high-volume congestion zone likely to cause rejections.
So far, ETH has failed to hold above the 0.5 and 0.618 Fibonacci levels at $2,341.9 and $2,480.8, respectively, both of which marked key retracement points from its 2024 peak near $3,600.
Trader Sentiment Divided as Ethereum Revisits Historic Demand Zone
Merlijn the Trader highlighted Ethereum’s return to the same range that preceded major bull runs in 2017 and 2020.
The analyst posted on X,
“If history repeats, ETH will make legends once again.”
Still, short-term price action remains under pressure from macroeconomic headwinds and technical resistance.
The relative strength index (RSI) remains below 35, indicating persistent bearish momentum.
Accumulation/distribution levels sit at 11.61 million, suggesting sideways accumulation without strong breakout conviction.
ETH Bulls Need Volume and Catalyst to Reclaim $2,200
Ethereum’s short-term future hinges on holding the $1,787 support and breaking the $2,200 resistance.
Failure to maintain current levels could trigger liquidations and intensify selling. Conversely, a volume-backed breakout above $2,580 may invalidate the bearish structure.
Ethereum’s market remains trapped between whale liquidation fears and long-term bullish supply dynamics. Over the last month, ETH price has been struggling to maintain bullishness.
Each time it went just over $2K it raised expectations among market participants. Analysts such as Dan Gambardello have been outspoken about this price volatility, calling it “brutal,” “annoying,” and ” not fun.”
Furthermore, there are multiple factors impacting the price, apart the the ongoing market uncertainty.
Even as the overall crypto market struggles, there are aspects such as waning institutional interest, and investor appetite for leverage to be considered.
That said, the increased whale activity can be an indication that investor interest is building up.
The recent pullback may be a precursor to a strong demand and possible comeback. After a prolonged downtrend, ETH price showed signs of reversal more recently.
For that to happen, the coin needs to break above $1950. That would confirm a bullish momentum in the short-term.
There are signs indicating that quantitative tightening may conclude for ETH’s price. While a bullish turn is possible, it is not without a “volatile journey,” as the analyst Gambardello termed it.
