Ethereum Price Holding Above $2600 Could Spark an Altseason?

Ethereum price is currently testing a crucial support level at $2,670, hovering dangerously close to the $2,600 threshold which is crucial for its price and other altcoins.

This price, just above 0.618 Fibonacci retracement level, was a key support that could dictate ETH’s and other altcoins short-term trajectory.

If Ethereum fails to maintain the $2600 level, it could signal a broader downturn, potentially impacting the anticipated altcoin season.

Ethereum has been navigating within an expansive ascending channel since mid-2023, adhering to both support and resistance levels delineated by Fibonacci retracement lines.

Notable touches at the 0.236 Fibonacci level around $1,456 and rebounds off the 0.382 level around $1,767 demonstrate the historical significance of these zones.

A fall below the current level near $2,670 might see ETH targeting lower supports at $2,414 and possibly $2,175.

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Conversely, a rebound from the $2,600 level could reignite bullish sentiment, possibly pushing prices towards upper resistance levels near $3,140 and beyond.

This potential recovery would be critical in maintaining the momentum required for an altseason, characterized by widespread gains across various altcoins.

Impact of ETH’s Supply on Exchanges Shrinking

Ethereum’s supply on exchanges reached a 9-year low, descending to 18.95 Million.

This decrease in available supply on trading platforms signaled a bullish outlook.

It suggests a lower willingness to sell among holders, potentially limiting the market’s supply-side pressure.

The continuous decline of exchange reserves might indicate a strengthening holder sentiment.

Typically, when fewer coins are available for trading, any increase in demand can more readily push the price upwards, as the scarcity of sellable assets becomes a pivotal factor.

This reduction in exchange-held ETH was a sign of long-term confidence among investors, possibly due to Ethereum’s ongoing development and increasing utility in sectors like DeFi and NFTs.

If this trend persists, it could herald the onset of an “altseason,” where the positive sentiment around ETH catalyzes similar bullish reactions across other altcoins.

Conversely, should a sudden influx of Ethereum to exchanges occur, it might lead to increased selling pressure.

This could dampen the potential for a rally and may delay or diminish the expected altseason, as a sudden rise in available supply could satisfy existing demand without a corresponding price increase.

How Whales Could Spark an Altseason?

The total balances for wallets holding between 10k to 100k ETH surged, reaching 16 Million ETH by February 2025, compared to just above 14 Million in early 2024.

This substantial accumulation coincided with a noticeable uptick in ETH’s price.

It escalated from around $2,400 in December 2024 to over $3,800 in January 2025 before slightly retracting.

After a peak in early 2025, ETH price headed into a downward trend while the balances in whales’ wallets did not shown a similar decline.

This indicates a potential holding strategy rather than a sell-off.

This scenario suggested that whales were possibly expecting future price increases and were thus holding onto their investments despite price volatilities.

If the whale behavior injects confidence into the market, it could influence the sentiment around Ethereum and potentially triggering an altseason.

An altseason could be more likely if these large holders continue to retain their holdings, signaling their bullish outlook on the broader crypto market.

Conversely, if these large holders begin to move their holdings back to exchanges, it could signal a readiness to sell.

And this might suppress Ethereum’s price and stymie the potential for an altseason.