Ethereum Reduces Exchange Reserves: A Signal of a Possible Leap to a New High
Date: 2025-08-13 Author: Henry Casey Categories: CRYPTO PAYMENTS
Over the past week, the price of Ethereum has added almost 20%, confidently consolidating above the $4,000 mark. Less than 12% remains to the historical maximum, and the combination of two key factors can accelerate the upward movement: minimal reserves on exchanges and record interest in derivatives.
ETH exchange reserves are at a minimum
One of the main indicators of market sentiment is Ethereum reserves on centralized platforms. The smaller their number, the lower the pressure from sellers and the higher the likelihood of rapid growth with an increase in demand.
On July 31, the volume of ETH on exchanges fell to 18.72 million tokens - the lowest level for the entire period of observation. By August 12, the indicator remains virtually unchanged at 18.85 million, despite the sharp rise in price. This suggests that even when quotes approach local highs, buyers continue to prevail over sellers.
Historically, the growth of reserves on exchanges has prevented further appreciation of ETH, but the current stability at low values indicates high interest in buying on the spot market.
Derivatives enhance the effect
At the same time, record activity is observed in the futures and perpetual contracts segment. On August 9, open interest reached $29.17 billion and remains close to this level.
High open interest increases the likelihood of sharp movements. A breakout of important resistance can lead to a massive closure of short positions with leverage, which will cause a "short squeeze" effect and strengthen the upward momentum. At the same time, limited supply on the spot market creates additional conditions for growth.
Technical picture and key levels
Ethereum is currently trading within an ascending triangle. The main resistance is around $4,468, which is the 2.618 Fibonacci level of the last rally. A break above this level will open the way to the previous record at $4,878, and the next Fibonacci target is $4,893, which will be a new all-time high.
The nearest support is located at $4,043. A loss of this level may trigger a deeper correction, but the current balance of factors suggests that the bulls retain the advantage.
Thus, the combination of record low ETH reserves on exchanges and high activity in derivatives creates a solid basis for a possible update of all-time highs. If the bulls manage to overcome the key resistance, Ethereum may reach new price heights in the near future.
