Four reasons Ether did not fall below $3K, and probably won’t
2 min read
Key takeaways:
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Ether’s profitability metrics drop to levels that have historically marked local bottoms.
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Ethereum fees up 83% weekly, signalling strong onchain demand.
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ETH supply on exchanges is at a nine-year low, with strong price support at $3,000.
Ether’s (
Ethereum’s fees over the past seven days climbed to $9.23 million on Friday, an 83% increase from the prior week. For comparison, Solana’s fees just rose just 9.1% while BNB Chain revenue declined by 41%.
This divergence highlights Ethereum’s dominance in decentralized exchange volumes, which climbed 22% in October, according to DefiLlama.
Decreasing ETH supply on exchanges
ETH supply on exchanges continues to drop. Data from Glassnode shows that the ETH balance on exchanges decreased by 22% from 17 million ETH on Aug. 24 to a nine-year low of 13.14 million ETH on Friday.
This metric dropped sharply over the last seven days, when deposits to trading platforms fell by over 31%. This drop coincides with a 14% decline in Ether’s price over the same period.
A decreasing ETH balance on exchanges indicates that there is less supply available for immediate sale.
ETH price sits on strong support above $3,000
Data from Cointelegraph Markets Pro and TradingView shows that bulls are fighting to maintain the ETH price above a key support zone, as illustrated in the chart below.
This is the area from $3,000 to $3,150, defined by the 100-week and 50-week simple moving averages (SMAs), respectively. These trendlines have supported the price since July.
However, a drop below this level could trigger a fresh downtrend, with the first line of defense emerging from the $2,800 support level. Lower than that, the bulls might retreat to the 200-week SMA around $2,500, where they could mount a strong defense.
“You want to see buyers stepping in and pushing for control around the $3.2K-$3.4K area,” crypto analyst Skew wrote in a recent X post.
A drop below this level would be a “clear invalidation for $ETH,” the analyst wrote.
Fellow analyst Crypto Patel wrote,
“Holding $3,000 support is key, as it could spark the next bullish wave.”
As Cointelegraph reported, Ethereum traders have flipped bullish, as evidenced by the uptick in positive comments on social media, which was interpreted as a good sign that ETH price was back on track.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
