According to CryptoPotato, Ethereum's price has seen a significant increase following its ETF approval, but it has yet to surpass its recent high. On the daily timeframe, the price broke above the large descending channel in May. However, it has been consolidating between the $3,600 and $4,000 levels since then, failing to continue its upward trajectory. Despite this, the Relative Strength Index (RSI) still shows values above 50%, indicating that the momentum is seemingly in favor of a further continuation past the $4,000 resistance level and toward a new record high.
On the 4-hour timeframe, the price action has been inconsistent over the past few weeks. The market has tested the $4,000 area a couple of times already but has failed to break above and is currently hovering around the $3,800 mark. However, the 4-hour RSI has recently broken above the 50% level, suggesting that the momentum is shifting bullish. Therefore, a breakout above the $4,000 level seems likely in the short term.
While Ethereum’s price has been consolidating below the $4,000 resistance level, significant events are seemingly unfolding in the background. The ETH exchange reserve, which measures the total amount of ETH held in exchange wallets, has recently plummeted below its 30-day moving average. This aggressive drop points to a potential accumulation happening during the current consolidation as the market gets ready to rally higher. Overall, this significant decline in exchange reserve can be very bullish for ETH, as it reduces the supply side of the equation.