Assessing Ethereum’s struggles: Why ETH must hold THIS support

• Ethereum clings to $2,392 support as exchange reserves hit multi-year lows, reducing selling pressure.
• Weak momentum and macro uncertainty threaten ETH’s stability above key realized price levels.
  

Ethereum [ETH] has been walking a tightrope above $2,392, the Realized Price of Binance depositors, and a key on-chain support level.

With the exchange supply drying up, holding this line could ease selling pressure. But if ETH slips, it risks flipping conviction into concern and sparking a fresh wave of distribution.

Binance’s Realized Price emerges as a critical point

As noted above, ETH traded just above the Realized Price of Binance User Deposit Addresses, which sat at $2,392 at press time.

According to CryptoQuant data, this represents the average cost basis for the exchange’s ETH depositors, making it a key psychological and structural floor.

The chart showed ETH rebounding each time it nears this level, showing its influence on short-term market behavior.

Source: CryptoQuant

While OKX User Deposit Addresses show a higher Realized Price at $2,706, Binance’s dominance in Exchange Reserve concentration makes its average more impactful.

If ETH stays above $2,500, most major cohorts – especially those frequently interacting with CEXs – remain in profit. A sustained drop, however, could trigger broader sell pressure and downside volatility.

Ethereum’s Exchange Reserves hit multi-year lows

Ethereum’s Exchange Reserves have fallen to 18.7 million ETH – the lowest level since mid-2022 – highlighting a persistent trend of coins moving off centralized platforms.

As shown in the chart, this steady decline in available ETH since early 2023 suggests reduced sell-side pressure, with long-term holders increasingly opting for self-custody.

Source: CryptoQuant

Interestingly, this decline aligns with ETH’s recent recovery to $2,500, suggesting that reduced circulating supply is acting as a buffer against sharper corrections.

Unless inflows surge, the thinning exchange supply could limit downside risk.

It may also strengthen bullish momentum, especially as macro demand narratives around Ethereum continue to build.

Momentum cools as ETH struggles

Ethereum was consolidating around $2,515 at press time, showing signs of hesitation after a brief rally. The RSI was at 52.9 – neutral territory – indicating a lack of strong momentum in either direction.

Meanwhile, the MACD continued to trend downward, with the signal line diverging below the MACD line.

This shows weakening bullish momentum and the potential for short-term downside pressure.

Source: TradingView

Candlestick patterns showed reduced volatility and smaller bodies, reinforcing the idea of market indecision. For ETH to regain upside traction, buyers must step in decisively above $2,530.

Otherwise, failure to hold above the realized price thresholds may lead to a deeper retest of lower supports.