Ethereum price showed new strength against Bitcoin as traders and analysts pointed to rare technical signals and changes in supply on exchanges.
The ETH/BTC ratio moved in a way not seen in years, while the Ethereum price tested major resistance levels.
At the same time, billions in ETH were left on exchanges, suggesting a less available supply.
ETH/BTC Ratio Marks First Major Shift in Years
It is worth noting that market watchers noted a significant development in the ETH/BTC ratio.
Analyst Niels revealed that the ratio’s monthly MACD crossed for the first time in five years. This turned what had been a resistance level into support.
He believed the ratio could move sideways for some weeks before continuing higher. Niels set a target between 0.065 and 0.07 for the ratio by the first quarter of 2026.
This projection caught the market’s attention because the ratio had not produced a signal of this scale in half a decade.
Traders said it could mark the start of a new phase where Ethereum price gained ground against Bitcoin.
The ETH/BTC chart has often been seen as a measure of relative strength between the two largest cryptocurrencies.
A rise in the ratio can mean Ethereum is outpacing Bitcoin in performance. The current move was seen as a rare moment, giving traders a point of focus for the coming months.
Ethereum Price Movements Around Key Resistance Levels
It is worth mentioning that Ethereum’s price action forms the basis for the ongoing discussion.
Ted Pillows, a top analyst, observed that ETH faced rejection at $4,500 but managed to bounce back quickly.
He said the $4,500 level would be key, either as a point to break above or as a barrier that might send the price lower again.
Another market participant suggested that ETH might first dip to $3,700, taking in liquidity, before moving up again.
In response to Ted’s tweet, Maya, another analyst, said Ethereum price holding support was healthy.
She explained that a clear break above $4,500 could lead to a strong short-term rise, while a rejection might keep the Ethereum price between $4,250 and $4,300.
Ted agreed that the zone around $4,500 would likely decide the near-term direction.
Traders continued to watch closely for signs of strength or weakness. At the time of reporting, ETH traded at $4,418.41. The coin has jumped up by 21.99% in the past month.
Its market capitalization stood at $533.24 billion and daily trading volume was $36.28 billion, down 5.15% from the day before.
Exchange Balances and Whale Activity Impact on Ethereum Price
On-chain data added another layer to the picture. Cas Abbé reported that Ethereum’s exchange balance turned negative for the first time.
This meant more ETH was leaving exchanges than entering. The shift removed billions in ETH from platforms where it could easily be sold.
Abbé explained that when exchange balances fall and selling pressure often declines.
He said past market cycles showed that major tops tend to follow reversals of this trend, not its early stages.
This suggested that the recent outflows could point to longer-term holding behavior rather than immediate selling.
At the same time, analytics account Lookonchain reported movement from a large Ethereum holder.
The whale had received one million ETH during the Ethereum ICO eight years ago and had remained inactive since then.
The address became active again, moving 150,000 ETH worth $645 million to a new wallet for staking.
The whale still held 105,000 ETH, worth about $451.5 million, in two addresses.
While the reason for the move was not clear, staking indicated a decision to lock up funds rather than sell them on the open market.
The combination of shrinking exchange balances and long-term holders staking ETH pointed to a tighter liquid supply.
Market observers said this could influence how Ethereum price next phase of growth unfolds.