Ethereum (ETH) is showing signs of potential upward momentum as on-chain data reveals a significant reduction in exchange supply, particularly on Binance. According to CryptoQuant analysis, Binance's Ethereum Exchange Supply Ratio dropped sharply from 0.041 to below 0.037 between mid-August and early September - the steepest decline in the observed period.
This supply reduction occurred without significant price correction, with ETH maintaining stability around $4,400. The phenomenon suggests investors are moving assets into self-custody rather than keeping them available for trading, which historically reduces sell pressure and often precedes bullish phases.
Technically, ETH is trading at $4,478 with a 0.57% daily increase. The hourly chart shows local resistance at $4,428, with potential growth to $4,500 if this level is breached. Longer-term analysis indicates key resistance at $4,491, and a breakout could propel ETH toward the $4,600 zone.
While mid-term indicators show some consolidation with low volume reducing the likelihood of sharp moves, the overall structure remains intact with strong support at $4,240. Momentum readings are balanced with RSI at 51 (neutral) and slightly bearish MACD, though longer-term moving averages (30-day to 200-day) maintain bullish alignment.
