Ethereum’s exchange supply shrinks again – Is ETH setting up for a recovery?

A major Ethereum whale intensified its accumulation activity after purchasing 7,000 $ETH worth $11.8 million. The latest acquisition lifted the wallet’s total purchases to 17,800 $ETH valued at approximately $29.76 million over the previous ten days.

Such sustained buying activity highlighted growing conviction from large holders despite Ethereum’s recent price struggles.

Notably, the whale accumulated $ETH at an average price of $1,672, a level close to the asset’s current market value. This positioning suggested that large investors continued to view current prices as attractive.

Exchange supply keeps shrinking

Beyond whale activity, exchange flow data revealed a notable shift in Ethereum’s circulating supply.

During the latest trading session, Ethereum recorded $95.92 million in inflows against $109.27 million in outflows. This imbalance produced a net outflow of roughly $13.35 million.

The persistent outflow trend indicated that more $ETH left exchanges than entered them.

Since exchange-held assets typically represent readily available selling supply, the decline suggested reduced immediate sell-side pressure.

Why has $ETH stalled below resistance?

Ethereum’s [$ETH] recovery attempt lost pace after the price approached the $1,800 resistance level and failed to establish a sustained breakout.

The daily chart showed that $ETH traded near $1,703 at the time of observation, while maintaining support above the key $1,700 region.

Technical indicators reflected a market that had attempted to recover but had not fully regained strength. The Relative Strength Index climbed from deeply oversold conditions and reached 38.02, while remaining below the neutral 50 threshold.

This reading suggested that buyers had regained some control, though bullish strength remained limited.

Meanwhile, the Parabolic SAR flipped beneath price during the recent rebound, signaling that short-term conditions had improved following the sharp decline earlier in June.

However, $ETH remained below both the descending trendline and the $1,800 resistance level. Unless buyers reclaimed these barriers, recovery attempts could continue facing resistance.

If bullish pressure strengthens, $ETH could challenge $1,800 again. Otherwise, support around $1,700 and $1,590 could attract renewed attention.

Liquidity map highlights Ethereum’s next battleground

Liquidation data revealed several high-interest zones that could influence Ethereum’s next move. The Binance Liquidation Heatmap showed a notable concentration of liquidity around the $1,720 to $1,730 region.

Since large liquidation clusters often attract price action, this zone emerged as a key area to monitor in the short term.

Below the current price, another significant liquidity pocket appeared between $1,665 and $1,675.

This cluster provided an important downside reference if Ethereum lost support near $1,700. Elsewhere, additional liquidity concentrations extended toward $1,750 and above $1,800, indicating areas where leveraged positions had accumulated.

As traders continued targeting liquidity-rich zones, Ethereum’s price action could remain drawn toward these levels before establishing a clearer directional move.

Final Summary

• Whale accumulation and exchange outflows continued reducing Ethereum’s available trading supply.
• $ETH held above key support, though resistance still limited recovery efforts.