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The Ethereum price temporarily flipped bullish on Wednesday and has moved back above the $2,100 level, but underlying signals are hinting at a potential continuation of the upward move. During this renewed upside strength, investors across cryptocurrency exchanges are demonstrating positive sentiment toward ETH as they have withdrawn a massive portion of the altcoin from these platforms.

A Massive Ethereum Outflow From Exchanges

With the cryptocurrency market slightly recovering, Ethereum is starting to showcase upside potential again. Meanwhile, a striking trend is emerging across the ETH market as investors are choosing to hold on to their coins rather than trade them off.

Leon Waidmann, a market expert and head of research at Lisk, has outlined a notable shift in investors’ sentiment and behavior, especially across cryptocurrency exchanges in the space. Even with persistent drawdowns in price, ETH is leaving trading platforms at a substantial rate not seen in years.

In the report shared on the X platform, Waidmann stated that the ETH balance on crypto exchanges has recently hit an all-time low after examining the Ethereum Percent Balance on Exchanges metric. The significant wave of withdrawal implies that more holders are shifting their holdings into long-term storage or private wallets, effectively decreasing the amount of ETH that is available for trading on these platforms.

When coins are leaving exchanges, it often points to growing confidence among investors. While also tightening market liquidity, this development could play a key role in shaping and determining the next major price move for ETH. 

As of Wednesday, only 11% of ETH’s total supply is present on crypto exchanges, which is significant compared to past cycles. In 2023, about 32% of the entire supply was available on exchanges. The decline continued into 2022 and 2024, but in a slow and steady pattern. Meanwhile, by March 2026, the exchange balance had dropped to 11%.

When there is less ETH available on trading platforms, it typically leads to reduced selling pressure as holders pull their holdings and store them in anticipation of a rally. Even as ETH is trading at $2,000, investors are not selling; instead, they are accumulating, which hints at growing bullish sentiment.

ETH Is Setting Up For A Strong Bounce

After a prolonged period of downside performance, Ethereum’s price may be setting up for a major rally. According to Merlin The Trader, ETH is experiencing maximum doubt and minimum attention, which is exactly the period when the altcoin builds up for a notable upward move.

On the 3-week time frame chart, ETH has formed a 3-year trend line, and it is still holding. The $2,100 mark is acting as the support trendline, and the $4,100 level remains the key resistance, acting as the upper line. If the altcoin loses this level, which marks its first since 2022, the structure will undergo a reset. Meanwhile, in the event that ETH holds this structure, it will result in a 339% move.

Featured image from iStock, chart from Tradingview.com

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Ethereum has reclaimed the $2,300 level as renewed buying activity begins to push the market higher after months of persistent downward pressure. The move marks a notable shift in short-term sentiment, with traders increasingly pointing to growing bullish momentum across the broader cryptocurrency sector.

Over the past seven days, Bitcoin has climbed approximately 8.6%, reinforcing the perception that the market may be transitioning out of the corrective phase that dominated recent months.

Ethereum, which often behaves as a higher-beta asset within the crypto ecosystem, has responded even more aggressively to the improving sentiment. Over the same period, ETH has surged roughly 13.9%, outperforming Bitcoin and signaling stronger speculative demand from traders.

Analysts note that the move higher is also being supported by strong inflows into crypto-related exchange-traded funds, reflecting continued institutional appetite for digital assets. As liquidity begins to return and risk tolerance improves, Ethereum’s ability to reclaim the $2,300 level is now being closely monitored as a potential pivot point that could determine whether the recovery can extend further in the coming weeks.

Ethereum Leverage Recovers After Historic Liquidation Reset

A recent analysis from CryptoQuant highlights how the Ethereum derivatives market has undergone a significant structural reset following the dramatic liquidation event that occurred on October 10. According to the report, the flash crash triggered one of the largest deleveraging events in the history of the cryptocurrency market.

During that event, the Ethereum Estimated Leverage Ratio (ELR) on Binance dropped sharply from 0.56 to 0.41, representing a 27% contraction in market leverage. The “10/10” event is now widely recognized as the largest 24-hour liquidation cascade in crypto history, with more than $19 billion in leveraged positions forcibly liquidated across the market.

Since that reset, leverage levels have gradually rebuilt as confidence returned. The report notes that Ethereum’s ELR has climbed to approximately 0.69 in mid-March, signaling that traders are once again increasing their use of leverage as sentiment improves.

The Estimated Leverage Ratio is calculated by dividing open interest by the amount of ETH reserves held on exchanges. In practical terms, it measures how aggressively traders are using leverage relative to the collateral available in the system.

Higher ELR readings typically indicate growing risk appetite and increased speculative positioning, which can amplify both upward price momentum and market volatility.

As sentiment improves, Ethereum and Bitcoin continue to act as high-beta risk-on assets, while more defensive investors may rotate toward tokenized gold instruments such as PAXG and XAUT.

Ethereum Attempts Trend Reversal After February Capitulation

The Ethereum chart shows the asset attempting to build bullish momentum after a prolonged corrective phase that dominated the market since late 2025. On the daily timeframe, ETH is currently trading around $2,310, following a strong rebound from the sharp selloff that occurred in early February.

That decline pushed Ethereum toward the $1,800 region, where a clear spike in volume indicates a capitulation event and aggressive buyer absorption. Since that low formed, price action has gradually stabilized, with Ethereum constructing a higher base between $1,900 and $2,100 before initiating the current upward move.

Technically, ETH has now reclaimed the short-term moving average, which had acted as dynamic resistance throughout the downtrend. This development suggests that short-term momentum is shifting back in favor of buyers. However, the broader market structure remains cautious, as price still trades below the longer-term 100- and 200-day moving averages, which continue to slope downward.

The $2,300–$2,400 zone now represents a critical resistance region. This level previously acted as support before the February breakdown and is likely to attract significant sell-side liquidity.

If Ethereum manages to consolidate above $2,300, it could open the door for a continuation toward $2,600 and $2,900, where the next major technical barriers and moving averages converge.

Featured image from ChatGPT, chart from TradingView.com 

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.