But Is a Breakdown Coming

Key Insights:

• Ethereum’s $3,400 support holds steady, but traders watch $3,570 for a critical breakout test.
• Exchange reserves hit multi-month lows, showing holders are moving ETH off platforms, limiting sell pressure.
• Technical indicators show a potential MACD bullish cross as ETH nears the top of a falling wedge.

Ethereum (ETH) was trading at $3,505.95, showing a modest daily gain of 0.18% and a 4.51% increase over the past seven days. The price remains stable after testing key support, but short-term direction remains uncertain as traders focus on two critical price zones.

$3,570 Resistance Remains Key

ETH bounced from the $3,400 support level and is now moving toward the $3,560–$3,570 resistance range. If this zone breaks with momentum, the next level to watch is $3,640. This area has acted as resistance before and could determine the strength of any upward move.

Trader Lennaert Snyder wrote, 

“If Ethereum comes in the $3,570 box, I’m watching for shorts after the failure and longs after the gain.” 

The chart also outlines a possible rejection from this range, which could pull ETH back to the $3,400 zone or lower. A clean drop below that level may lead to a test of $3,260.

Wedge Pattern and MACD Crossover in Focus

On the daily timeframe, ETH shows a falling wedge pattern—a setup often linked to a breakout. The price has tested both sides of the wedge, and recent candles show pressure building near the upper trendline.

MACD data shows the blue line climbing toward the orange signal line. This could lead to a crossover, which would suggest growing strength. 

Kamran Asghar noted,

“$ETH is loading up for liftoff. Falling Wedge on the chart, and the MACD is seconds away from a bullish cross.”

Exchange Supply Ratio Hits Multi-Month Low

Data from CryptoQuant shows Ethereum’s exchange supply ratio on Binance has dropped to 0.032, the lowest level since April 2025. This ratio measures how much ETH is held on exchanges. A lower reading often reflects coins being moved into self-custody or long-term wallets.

Crypto Rover posted: “NO SELLING,” suggesting reduced selling pressure from holders. While ETH has risen from lows near $1,500 to above $3,500, supply on exchanges continues to fall, showing that many users may not be preparing to sell.

Market Awaits Next Trigger

Price remains between well-defined support and resistance. Traders are watching for movement above $3,570 or below $3,400 to confirm the next trend. Until then, ETH may stay range-bound, with Bitcoin’s price direction likely to influence short-term moves.