TL;DR

Ethereum forms a bullish pennant as it compresses between $4,400 support and $4,800 resistance. Whale wallets holding over 10,000 ETH rise sharply, signaling renewed confidence in long-term growth. ETH exchange reserves hit multi-year lows, suggesting reduced sell pressure and rising demand.

Ethereum Price Holds Firm Within Tight Pattern

ETH is currently trading around $4,500. The price movement in recent days shows a pause after a steady climb, with the chart forming what analysts describe as a bullish pennant. This structure includes rising support and falling resistance, creating a narrowing zone that often leads to sharp moves once the price breaks out.

#Ethereum Bullish Pennant$Eth is very close to a breakout, just in time for Uptober. We will see the #Altseason start to kick-off once this happens. pic.twitter.com/tSSe0pxz9t

Buyers have continued to hold key support levels, with each dip finding demand around the $4,400 to $4,500 area. The upper range, around $4,700 to $4,800, remains an obstacle. Traders are watching for a close above this level as a possible signal that momentum may return.

Short-term trend indicators remain in positive territory. Moving averages, often used to track trend strength, are still pointing upward. As long as Ethereum holds above the rising trendline, the current setup stays intact.

Another analyst, Mister Crypto, pointed out a potential breakout above $4,800. The target shared was $5,800, based on the current range. He wrote, “$ETH is ready to explode here,” suggesting confidence in the strength of the pattern if resistance breaks. However, the asset has yet to close above that level, and volume has remained average.

Large Holders Increase Positions

Data from on-chain platforms shows a sharp increase in the number of Ethereum addresses holding over 10,000 ETH. According to figures posted by Diana Sanchez, this group has grown in recent months.

Mega whales are buying loads of $ETH! pic.twitter.com/WieD5p2jWT

Meanwhile, this trend follows a long period of selling or inactivity by larger accounts. The shift may suggest these holders are positioning ahead of a possible move higher, especially with the asset trading above $4,500 for most of September. These accounts tend to move large amounts of capital and often act during the early stages of price changes.

As CryptoPotato reported, wallets holding between 10,000 and 100,000 ETH have now reached unrealized profit levels comparable to those last seen at the peak of the 2021 bull market. This group is now sitting on paper gains similar to those recorded when ETH was nearing all-time highs.

Ethereum on Exchanges Falls to Multi-Year Lows

Data from CryptoQuant shows that Ethereum held on exchanges has dropped to 16.9 million ETH, marking the lowest level seen in several years. When less ETH is held on trading platforms, it often means more coins are being moved to private wallets or long-term storage. In a recent post, Merlijn Trader said,

“Ethereum supply shock is real.”

He noted that institutions and larger buyers continue to remove ETH from public markets. “Every dip is bought,” he added, pointing to the drop in available supply. A reduced float on exchanges can limit sell pressure, especially if demand rises.

Source: Merlijn Trader/X Ethereum price structure is holding inside a tightening range. Traders are eyeing the $4,700-$4,800 level as the next point of clearance. Should the price break above this level with volume, it would spell another road heading to $5,000. For now, $4,400 support is holding.