Ethereum’s (ETH) price has been on a continuous decline, but this has not deterred whales and long-term holders from seizing the opportunity to buy the dip. According to on-chain analytics firm Santiment, as of March 21, 2025, crypto enthusiasts have been accumulating ETH tokens, leading to a significant decrease in the amount of ETH held on exchanges to just 8.97 million. This trend is seen as bullish by many in the crypto community.
This drop in exchange reserves is a rare occurrence, with the last instance reported back in November 2015. The current reserve level is 16.4% lower than it was just seven weeks ago, indicating a potential accumulation by whales and long-term holders. Experts interpret these metrics as positive signs, especially as prices continue to fall alongside ETH exchange reserves.
Despite the current price drop, Ethereum is trading near $1,960, with a slight 0.50% decrease in the past 24 hours. The trading volume has also decreased by 40%, suggesting lower participation from traders and investors possibly due to market uncertainty.
In terms of price action, Ethereum remains bullish, having recently broken out of a prolonged consolidation phase. After the recent price drop, the asset seems to have successfully retested that zone and is now showing signs of upward movement. Based on recent price action and historical patterns, if ETH can hold above the $1,950 level, there is a strong possibility of a 12% surge to reach $2,200 in the coming days.
At the moment, Ethereum is trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating a potential price rebound. Overall, despite the bearish market sentiment and reduced participation from investors and traders, ETH’s current level suggests a bullish outlook for the near future.