After a 17-month consolidation where Ethereum (ETH) gained a modest 39%, recent on-chain metrics reveal a sharp decline in Exchange-Depositing Addresses, signaling reduced selling pressure. This fundamental shift, combined with robust technicals, underpins a growing consensus among analysts for an imminent surge, with a strong Ethereum price prediction $3.6K now circulating.
Price of Ethereum (ETH)
Charting the Bullish Divergence
For over a year, Ethereum’s price action largely tested the patience of its investors. From August 2024 through early 2026, the native asset of the second-largest cryptocurrency by market capitalization delivered somewhat muted returns, averaging just 2.29% monthly. This period saw ETH largely drift sideways within a descending consolidation channel, offering little in the way of sustained bullish momentum. However, the tides appear to be turning, with early signs pointing towards a significant shift in market dynamics.
This evolving narrative is becoming clearer on the charts. Renowned Swissblock analyst Henrik Zeberg recently highlighted a compelling divergence in Ethereum’s price structure. While ETH’s price was confined within its descending channel, its Relative Strength Index (RSI) on the weekly timeframe was quietly trending higher along an ascending support line. This classic bullish divergence suggests that underlying selling pressure was weakening even as price action remained subdued. Historically, such setups have often foreshadowed significant price recoveries. Adding to this technical conviction, market buzz indicates that Bitfinex whales – those deep-pocketed institutional players – have been accumulating substantial long positions on ETH, signaling strong confidence in higher price levels. ETH has already broken above the resistance of its long-standing descending channel, an initial move that could pave the way for a sustained push upwards.
On-Chain Metrics Signal a Supply Squeeze
Beyond the technical indicators, Ethereum’s on-chain exchange metrics are painting an increasingly bullish picture, pointing to a fundamental shift in supply-demand dynamics. The number of Exchange-Depositing Addresses, which tracks wallets sending ETH to exchanges, has seen a sharp decline, currently hovering near 18 million. This significant drop suggests that fewer holders are preparing to sell their ETH, effectively reducing the near-term distribution pressure on the market. It implies a growing preference among investors to HODL their assets rather than offload them onto trading platforms.
Concurrently, Ethereum’s Exchange Supply Ratio has continued its downward trajectory, currently sitting around 0.137. This ratio reflects a steady reduction in the total ETH reserves held on centralized trading platforms. A lower Exchange Supply Ratio typically translates to reduced sell-side liquidity, a condition that often supports price strength, especially during periods of increasing demand. This tightening availability of ETH on exchanges could become a critical catalyst for upward price momentum, making the Ethereum price prediction $3.6K a tangible target for many.
DeFi Ecosystem’s Steady Hand
Ethereum’s robust decentralized finance (DeFi) ecosystem also provides a crucial supportive backdrop for its price outlook. Despite recent market volatility, DeFi activity on the network has remained remarkably stable, reinforcing the notion that capital is not exiting the ecosystem. The Total Value Locked (TVL) within Ethereum’s DeFi protocols has consistently held within a well-defined range since November.
Following a market pullback that saw TVL dip to $64.66 billion, it has since recovered to approximately $69.95 billion, according to data from DeFiLlama. This $5.29 billion increase over the period, while measured rather than explosive, points to steady capital inflows and sustained user engagement. TVL serves as a broad measure of network health and investor confidence. The resilience demonstrated by Ethereum’s DeFi sector, coupled with consistent capital inflows, further strengthens market sentiment and reinforces the improving outlook for ETH.
Trend of Ethereum (ETH)
Momentum Builds: Is $3.6K the Next Stop?
The confluence of these factors – a clear bullish technical divergence, significant whale accumulation, a tightening supply on exchanges, and a resilient DeFi ecosystem – suggests that Ethereum is building substantial momentum. Market sentiment, which was once characterized by investor patience during prolonged consolidation, has now visibly shifted towards optimism. The initial break above key technical resistance signals a potential trend reversal, with on-chain activity confirming that market positioning is increasingly favoring the bulls.
As these bullish catalysts align, the prospect of a significant price surge for ETH becomes increasingly plausible. Many analysts are now pointing towards a notable upside, with the Ethereum price prediction $3.6K gaining traction as a near-term target. For those looking to track these developments and gain deeper insights into market movements, platforms like cryptoview.io offer comprehensive tools. Keeping an eye on these indicators will be crucial as Ethereum potentially enters its next growth phase. Find opportunities with CryptoView.io
