TLDR
- Ethereum reserves on exchanges are rapidly decreasing, signaling rising demand in the market.
- Over $11 billion worth of Ethereum short positions could be forced to close if ETH surpasses $4,200.
- Fresh buyers are increasingly moving their ETH off exchanges, reducing the supply available for sale.
- Ethereum is currently trading at $4,122, just below a crucial price level that could trigger a surge.
- Analysts predict Ethereum could see a price surge towards $4,950 and possibly reach $5,900 in the coming weeks.
Ethereum continues to see massive outflows from exchanges, signaling rising demand and reducing sell pressure. ETH price trades near $4,122, just below the $4,200 liquidation trigger for over $11 billion in short positions. Analysts expect a possible rally toward $4,950 and a long-term technical target near $5,900.
Ethereum Reserves Fall Sharply as Buyers Withdraw Coins
Ethereum reserves on spot exchanges have dropped significantly in recent days, indicating strong buying interest and reduced supply pressure. A CryptoQuant analyst noted that investors are moving ETH into self-custody or staking wallets. These shifts in Ethereum reserves often show rising accumulation trends and reduced market liquidity.
Is ETH About to Boom? Reserves Are Dropping! So What’s the Missing Piece?
“During all this time, the price will swing. If price falls below the accumulating whales’ realized price (3rd image), it will be a buy/accumulate opportunity.” – By @cryptometugce pic.twitter.com/dnqQ0GEQyr
— CryptoQuant.com (@cryptoquant_com) September 29, 2025
The analyst explained two main reasons for these movements: long-term holders moving coins or new buyers withdrawing after purchase. In this case, data points toward new demand, which increases pressure on supply and boosts price potential. As Ethereum reserves decline further, chances of continued upward momentum also grow.
These falling reserves align with a bullish structure that shows increased confidence from recent ETH buyers. The trend suggests ETH holders expect price appreciation in the near term. The reduced Ethereum reserves reinforce this narrative, especially as price hovers near a breakout zone.
$11 Billion in ETH Shorts Face Liquidation Risk Above $4,200
As Ethereum trades just under $4,200, short sellers face significant risk if prices move higher. According to Coinglass, over $11 billion in short positions may be liquidated if ETH crosses this level. This forced buying could rapidly accelerate Ethereum’s next price rally.
Short sellers must buy ETH to cover positions if liquidations trigger, causing strong upward price momentum. This buying pressure could push prices toward key resistance levels. Ethereum reserves continuing to fall amplifies this risk and limits available supply for shorts to cover.
If ETH holds support and breaks past $4,200, analysts anticipate a rapid move to $4,950. Technical patterns suggest this level is a near-term target following a symmetrical triangle breakout. With Ethereum reserves dropping, buyers may gain more control over price action.
Ethereum Bullish as $5,900 Target Emerges
Prominent analyst Crypto GEMs highlighted a symmetrical triangle formation, often signaling large breakout moves. ETH recently surged near $4,950 after testing this pattern’s upper trendline. He believes momentum could carry ETH toward $5,900 if current support levels hold.
The four-year symmetrical triangle formation on the #Ethereum chart is about to confirm a reversal test after its upward breakout. We previously emphasized the importance of the breakout at $4,000, and upon breaking through this level, the price surged strongly to $4,950.… pic.twitter.com/5ALyOsNqZF
— The Crypto GEMs (@CryptoGemsCom) September 28, 2025
The $5,900 mark aligns with a head-and-shoulders technical target formed during previous consolidation phases. Ethereum reserves shrinking supports the possibility of reaching this zone. Strong accumulation, limited supply, and potential liquidations give bulls a significant edge.
