Ethereum and Bitcoin Enter Critical Support Zones as Exchange Reserves Hit Record Lows
Analyst Michaël van de Poppe says the deciding factor is whether ETH can hold its current range and bounce.
A recovery from these levels could spark a phase of ETH outperforming Bitcoin. Failure to defend the zone, however, may open the door to a broader market downturn.
Bitcoin Stabilizes — But the Trend Depends on Key Levels
Bitcoin is also sitting on a pivotal support area. Van de Poppe expects BTC to consolidate around current prices, ideally revisiting the $85,500 range to close the CME gap before attempting a move toward the 20-day MA at around $95,000.
If buyers fail to defend support, sentiment could quickly deteriorate, strengthening bearish momentum across the market.
Record-Low Exchange Reserves Signal Long-Term Accumulation
On-chain data paints a contrasting picture beneath the volatility. Crypto Rover highlights that Bitcoin exchange reserves have dropped to new historic lows, according to figures from CryptoQuant.
As BTC on centralized exchanges continues to decline, the available supply shrinks — a pattern commonly associated with long-term accumulation rather than distribution.
READ MORE:
Bitcoin Attempts Recovery After Brutal Sell-Off as Analysts Warn of Much Deeper Risk
Market Outlook Hinges on the Next Move
With both ETH and BTC sitting at decisive levels, traders, institutional desks, and long-term holders are tracking the same inflection points. A strong rebound could reignite bullish sentiment and lead to fresh momentum in altcoins. But a break lower risks triggering another wave of sell-offs and an extended corrective phase across the crypto market.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
The post Ethereum and Bitcoin Enter Critical Support Zones as Exchange Reserves Hit Record Lows appeared first on Coindoo.
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