Ethereum price forecast: Exchange supply declines, ETH targets $2,300

What is the price of Ethereum today?

Ethereum prices are currently trading around US$1,919, down about 1% during the day. Ethereum has retreated from recent highs, but traders are watching closely for a bigger move.

Futures volume fell nearly 20% to US$31.61 billion in the past 24 hours. Open interest also fell slightly to $27.68 billion. Despite the correction, options trading activity increased, with options open interest rising 5.63% to US$5.05 billion.

These mixed data suggest that traders remain active in the Ethereum market despite the cooling of short-term momentum.

Why Ethereum prices are rising today

Ethereum has attracted much attention this week for a simple reason: tokens are flowing out of exchanges rapidly.

According to data shared by analyst Ali Charts, nearly 1 million Ethereum pieces (worth approximately US$2 billion) have been withdrawn from the exchange in the past month. Exchange balances have dropped from approximately 17.2 million Ethereum units to nearly 16.4 million units.

Declining exchange supply usually means fewer currencies available for sale. Traders often interpret this as a signal that holders expect prices to rise in the future.

Can the Ethereum price hold on to US$1,850?

Ali Charts also pointed out that a double bottom pattern may be forming on the Ethereum chart. Under this setting,$1,850 becomes the key level to hold.

If the altcoin remains above the region, based on this pattern, the next upward target price is close to US$2,300.

Double bottoms are a common chart pattern that may signal a shift from selling pressure to buying interest. But there are no guarantees, and Ethereum needs strong buying volumes to confirm this pattern.

Is the Ethereum ETF net inflow or outflow?

Institutional demand for Ethereum has not subsided. According to SoValue data, the U.S. spot Ethereum ETF recorded a net inflow for the third consecutive trading day on July 21, totaling US$37.47 million.

BlackRock's ETHA fund led the way, with new inflows of US$52.79 million. Fidelity's FETH reversed, with an outflow of $15.32 million. Traffic from other Ethereum ETF products was flat on the day.

Stable ETF inflows, even moderate, suggest that some institutional funds continue to enter the Ethereum market despite recent price fluctuations.

Ethereum Price Forecast: What the Chart Shows

From a daily chart, Ethereum is trying to recover after recovering from recent lows near $1,500.

The altcoin is currently trading above its 20-day and 50-day index moving averages. This is a short-term bullish signal.

However, prices are testing resistance from the 100-day exponential moving average (close to $1,938) and a longer-term downtrend line.

The Relative Strength Index (RSI) is around 63. This suggests that bullish momentum is building, but Ethereum has not yet entered overbought territory.

Critical level observations

Resistance: $1,950-$2,000. Breaking through this area could open up space for a rise to $2,100-$2,200.

Current price: approximately US$1,920. The 100-day exponential moving average of $1,938 is being tested.

Support: US$1,800-US$1,850. If the resistance level holds, this is the pullback area.

Upward target: US$2,300. Based on a double-bottom pattern, the premise is that the US$1,850 support level is held.

Where will Ethereum prices go next?

If buyers succeed in pushing prices up to the $1,950 to $2,000 region and holding them, the increase may expand to $2,100 to $2,200 in the coming weeks.

On the other hand, if this resistance level is firmly held, the altcoin may fall back to the US$1,800-US$1,850 support area before attempting another upward move.

Whether Ethereum is worth buying now

Overall, Ethereum's chart currently shows cautious bullish momentum. Falling exchange balances and stable ETF inflows have added some support to bullish views.

But a true trend reversal still requires a clear break through the long-term downtrend line and the 100-day exponential moving average. Until then, Ethereum was still in the wait-and-see territory for many traders.