Ethereum Price Forecast: ETH dips below $2,400 as exchange reserves fall
Ethereum price today: $2,370
- ETH drops 5% alongside stocks as Middle East tensions and AI-related spending reverse gains from the last two days.
- Exchange reserves are falling and large wallets are accumulating ETH, which suggests some dip buying.
- ETH could find support near $2,355 after a rejection at the convergence of the 20- and 50-day EMAs.
Ethereum (ETH) drops below $2,400 on Thursday as renewed US-Iran crisis tensions and AI-related spending pressured the crypto market.
The top altcoin is down 5% over the past 24 hours, reversing gains from the last two days and triggering $93 million in liquidations, according to Coinglass data. Long positions accounted for roughly $85.3 million of the total.
The wider crypto market also fell by 4%, with total liquidations reaching roughly $454 million in the past 24 hours.
The decline follows renewed US-Iran tensions after President Donald Trump ruled out talks of negotiations with Tehran on Wednesday, noting that "something" will happen "fair soon." More Houthi attacks on Saudi Arabia also prompted concerns of further Middle East supply chain disruptions.
Following the moves, Brent crude rose 3.8% to $113 per barrel. Stocks declined sharply, with the tech-heavy Nasdaq falling 2.8% as AI-related spending concerns reversed Wednesday's gains despite improved Q3 tech earnings. The flight to safety pulled the benchmark US 10Y Treasury Yield below 5%, its lowest level in nearly a month.
Exchange reserves fall as large wallets accumulate ETH
While prices are declining, on-chain signals suggest dip buying.
Ethereum exchange reserves, which track the amount of coins held across exchange wallets, dropped by 170K ETH to 14.882M ETH over the past 48 hours. The move may indicate coins are leaving exchanges for self-custody, which would reduce available sell-side supply.
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On-chain smart money tracker Lookonchain also highlighted several whale or large holder wallets accumulating ETH over the past 24 hours.
Another wallet has been rotating from Bitcoin, selling 246.25 BTC ($20.64 million) to buy 8,286 ETH ($20.64 million) on Thursday. Over the past 11 days, the wallet has sold 1,917.7 BTC and bought 64,545 ETH, Lookonchain noted.
Ethereum technical outlook: ETH eyes $2,355 support
ETH fell below $2,400 after failing to hold above the 20-day and 50-day Exponential Moving Averages (EMAs) convergence. Bears have continually accelerated selling pressure near the short-term EMAs over the past week.
The top altcoin is now approaching the 100-day EMA and the $2,355 horizontal level, which has consistently held as support over the last eight days. A decline below could see ETH test the $2,204 horizontal level before the $2,026 base.
On the upside, ETH must sustain a daily close above the short-term EMAs and hold them as support to challenge upward resistance levels.
Momentum indicators, the 14-day Relative Strength Index (RSI) and Stochastic Oscillator (Stoch), are declining at 39 and 26, respectively, indicating bearish dominance, with oversold levels in sight.
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