Ethereum on-chain data shows reduced selling pressure and declining exchange reserves, but ETH needs a breakout above $1,960 for further upside.
Amid the ongoing market uncertainty, Ethereum (ETH) is making waves on-chain, showing signs of renewed strength and pointing to a potential price recovery. On July 31, 2026, a well-followed crypto analyst at CryptoQuant, Pelin Ay, shared a post on X stating that ETH transfers on Binance have fallen significantly.
This suggests that selling pressure has decreased notably and looks bullish for the ETH price.
The analyst noted that ETH transfers by miners to Binance, as shown on the chart over the past few years, have fallen to the lowest levels in history, a sharp contrast to the elevated transfer activity seen in previous years.
The analyst further noted, “When miners don't send ETH to exchanges, the supply ready and waiting for direct sales in the market also diminishes.”
However, this metric alone does not guarantee that the price will rise; the demand side must also remain strong. The post added,
"With this behavior, if an increase in demand arrives, then there will be no obstacle in the way of a price rise. Right now, with the demand side being weak, the ETH price continues its sideways movement. We won't have to wait for institutions to start buying."
Not just that, but exchanges' ETH reserves also declined significantly at the same time, indicating mass accumulation. CryptoQuant’s Exchange Reserve metric for all exchanges shows a massive decline of 388k ETH over the past month, falling from 15.48 million ETH to 15.092 million ETH.
Such a decline in the exchange reserve is typically a bullish signal, as it suggests that investors and long-term holders are moving assets from exchanges to their wallets.
Looking at these developments, it appears that ETH's recent rally was potentially triggered by these factors, as it jumped from $1,569.58 to $1,885.
At press time, the ETH price is down 1.65% over the past 24 hours and trades at the $1,885 level. In fact, trading volume declined 22% to $8.71 billion during the same period, indicating a lack of market participation.
Falling volume alongside the price decline suggests that traders and investors might not be interested in the current trend, which appears bearish.
Now, the question is what's next for the ETH price: is it going to explode or remain sideways in the coming days?
Looking at TradingView’s daily chart, it seems that the ETH price has been moving sideways since July 15, 2026. In fact, this sideways movement comes after a bullish breakout above the prolonged key resistance level of $1,840.
The current price action suggests that ETH continue consolidating as long as it trades between the upper and lower boundaries of $1,818 and $1,960.
If the price clears the upper boundary and closes the daily candle above the $1,960 level, it could open the door for an upside rally. In this case, ETH could rise 9.50% to $2,160 level, the next key resistance.
On the other hand, if the sentiment shifts and the price falls below the $1,818 level, it could trigger further downside. In this scenario, ETH could fall toward the next support near $1,715.
At press time, ETH's long-term technical outlook remains bearish as it continues to trade below the 200-day Exponential Moving Average (EMA), indicating strong seller dominance.
No comments yet
Be the first to share your take when accounts launch.
