Ethereum

Ethereum Just Turned Bullish, Here’s What’s Next

TL;DR

ETH breaks key resistance and retests support, showing a potential continuation of the current uptrend.
Exchange reserves hit 16.5M ETH, indicating less selling pressure and growing long-term accumulation.
Negative funding and liquidations suggest short squeeze risk as price rebounds from range low.

Ethereum Breaks Resistance and Holds Support

Ethereum has moved above a key level at $4,100. This price rejected ETH three times earlier this year. Each time, the price failed to continue higher and dropped back.

Notably, that level is no longer acting as resistance. The price broke above it in mid-2025. It then came back down to test the same area. This time, it held as support. The structure now shows a clean breakout followed by a retest. This is often seen as a shift toward a stronger trend. Price targets above this level sit near $5,300, $6,800, and $8,400 based on recent chart projections.

BTC price chart — Source: Merlijn The Trader/X

ETH is currently down 16% from its recent high. It is trading near its 100-day moving average. This is the same pattern seen earlier in the year. At that time, ETH dropped to the same zone, then quickly moved higher.

The chart shows the 50-day and 100-day moving averages forming a support area. In previous moves, this zone triggered renewed buying. Merlijn The Trader commented:

$ETH IS BACK IN BUY THE DIP ZONE

Last time it launched straight after.

Ignore it now, and you’ll be chasing when Ethereum is 5 digits. pic.twitter.com/7We1dJA95X

— Merlijn The Trader (@MerlijnTrader) September 23, 2025

His latest chart shows this area marked again as a possible entry point. The price zone is around $3,700 to $3,800.

Exchange Reserves Fall to New Low

Data from CryptoQuant shows a steady drop in ETH held on exchanges. Total exchange reserves have fallen to about 16.5 million ETH. This is the lowest level recorded in over a year.

Ethereum Exchange Reserve - All Exchanges (2) — Source: CryptoQuant

Lower reserves often mean fewer coins are available for trading. This happens when investors move coins to wallets or staking platforms. At the same time, ETH price remains near $4,100. This may suggest accumulation continues even as price consolidates.

Futures Market Shows Liquidations and Short Bias

Earlier this week, ETH dropped below the $4,150 range low. The move triggered stop-losses and liquidations before the price somewhat recovered above it. The wick shows a fast bounce after a sharp decline, a sign that buyers stepped in quickly.

Open interest fell during the move. This indicates many leveraged positions were closed. Funding rates also flipped negative on platforms like Binance and OKX. This suggests traders were leaning short. Byzantine General commented:

If $ETH is gonna bounce, it would probably makes sense that it bounces after taking out the range low. pic.twitter.com/jYYRybtzMO

— Byzantine General (@ByzGeneral) September 23, 2025

Not all data supports a clear move higher. Analyst Ted pointed out that Ethereum-linked stocks like SharpLink Gaming and BitMine are down from their recent highs. He wrote:

“Until the stocks recover, ETH will most likely bleed.”

While on-chain activity points to reduced selling pressure, broader sentiment appears mixed. Price remains above key support, and some indicators suggest buyers are active. Traders now watch for confirmation of a trend shift in the days ahead.

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Ethereum

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Ethereum

ETH2 Beacon Deposit Contract Now Controls 60% Of All Ethereum: Arkham

Rain Lohmus bought $75,000 worth of ETH in 2014, which is now worth $871 million. Yet, he cannot move even a single coin.

New on-chain research from Arkham Intelligence this week shows that the wallet address holding the most ETH today is not an individual, not an exchange, not an ETF issuer, but the staking contract that secures Ethereum.

According to Arkham, the ETH2 Beacon Deposit Contract currently holds more than 72.4 million ETH, worth around $252 billion at current market prices, and represents approximately 60% of the total supply.

Ethereum’s Power Center

In terms of individuals, the research firm confirmed that the largest known individual holder of ETH is still Rain Lohmus, the founder of Estonian bank LHV, who bought 250,000 ETH in the 2014 presale for around $75,000. Those coins would now be worth roughly $871 million, but Lohmus does not have access to them because he lost the private keys years ago.

The second largest identifiable individual holder is Ethereum co-founder Vitalik Buterin, who currently holds around 240,000 ETH, worth around $840 million.

Beyond individual wallets, centralized exchanges and institutional entities collectively control some of the largest pools of Ether. Binance, for one, holds approximately 4.09 million ETH, while asset manager BlackRock holds around 3.94 million ETH, largely associated with its iShares Ethereum Trust ETF. Coinbase is the next largest institutional holder, with approximately 3.5 million ETH across multiple addresses, including cold wallets and staking reserves for its cbETH staking token.

Following suit are Upbit, Robinhood, Kraken, OKX, and Bitfinex, which appear among the top institutional holders.

Seized Funds, Stolen Funds, and Layer-2 Bridges

Arkham found that governments also appear on the leaderboard. For instance, the United States government controls around 60,000 ETH, which largely consists of seized criminal funds, including from the Potapenko/Turogin case and from seizures related to the Bitfinex hacker.

Ethereum

Ethereum Traders Just Flipped Bullish, But History Says This Is a Major Red Flag

Ethereum’s bounce toward $3,500 triggered instant FOMO, but Santiment says extreme optimism usually means price is about to disappoint.

Ethereum traders have swung sharply from extreme bearishness to extreme bullishness within just a few days, based on social media sentiment.

But fresh data suggest that when ETH nearly rebounded to $3,500 on Thursday, the crowd interpreted the move as a confirmation that the asset was “back in business.”

ETH Trader FOMO

Santiment warned that this sudden pivot is similar to the same pattern seen earlier in the week, when retail panic selling actually contributed to the rebound. Now, the rapid return of FOMO could similarly stall further upside.

According to the analytics platform, prices have shown a tendency to move in the opposite direction of the crowd, and that more neutral sentiment phases have proven to be stronger buy signal environments than euphoric ones.

Crypto trader Ted Pillows also noted that even though the altcoin is showing some rebound after this week’s sharp decline, the recovery lacks conviction. According to Pillows, the current move higher, though modest, is being driven largely by short positions being closed rather than new spot buyers stepping in. He added that Ethereum needs to reclaim the $3,600-$3,700 price range with meaningful inflows to establish strength and dismiss the risk of further downside. Without that confirmation, Pillows believes the odds still favor lower prices from here.

Despite the near-term uncertainty, some traders say the bigger picture is still pointing toward a substantial upside scenario. For instance, crypto trader “Trader Tradigrade” said that ETH’s monthly chart is currently developing what he describes as a massive Inverse Head and Shoulders pattern, with a potential price target of $14,000 once confirmed.

“Wet Blanket” Phase

As the crypto market remains sluggish, Galaxy CEO Mike Novogratz believes that this could be due to long-term holders rebalancing their net worths and diversifying away from massive concentrated holdings after a very long bull market. Novogratz deems this to be a healthy sign in the medium and long term as these positions get distributed. In the short run, however, he said that “it’s a proverbial wet blanket” and has weighed on prices.

About the author

Chayanika has been working as a financial journalist for six years. A graduate in Political Science and Journalism, her interest lies in regulatory implications with a focus on technological evolution in the crypto realm.