Ethereum (ETH) Price: Climbs 7% as Exchange Reserves Drop to Multi-Year Lows

TLDR

• Ethereum price increased 7% over the past week, trading at $3,013 after recovering from its November low of $2,680
• Exchange reserves dropped from 20.9 million ETH in July to 16.8 million, reaching multi-year lows
• The cryptocurrency broke out of a falling wedge pattern on the daily chart, suggesting a potential trend reversal
• Spot Ether ETFs recorded $236 million in net inflows this week after three weeks of outflows totaling $1.7 billion
• BitMine purchased 14,618 ETH worth $44.34 million on Thursday, continuing its accumulation strategy

Ethereum price has recovered above $3,000 after breaking out of a falling wedge pattern. The second-largest cryptocurrency by market cap is trading at $3,013, up 7.3% in the past seven days.

The token dropped from $3,633 on November 10 to a monthly low of $2,680 on November 21. It has since climbed back above the $3,000 level.

Ethereum remains nearly 40% below its all-time high reached in August this year. The recent price movement follows several key developments in the market.

Exchange supply has declined sharply since early July. Data from CryptoQuant shows reserves dropped from 20.9 million ETH to 16.8 million at press time.

Lower exchange supply means fewer tokens available for immediate selling. This reduction typically decreases selling pressure in the market.

The upcoming Fusaka upgrade has generated community interest. The upgrade is potentially scheduled for December 3 and would be the network’s largest update since The Merge.

The Fusaka upgrade aims to address data availability for rollups. This represents one of the network’s most pressing bottlenecks.

ETF Inflows Return

Spot Ether ETFs have seen returning capital this week. The nine U.S. spot ETH ETFs recorded $236 million in net inflows so far this week.

This follows three consecutive weeks of outflows that totaled $1.7 billion. The shift in ETF flows has supported the recent price recovery.

BitMine purchased 14,618 ETH on Thursday according to Arkham Intelligence data. The transaction was worth $44.34 million and came through wallet “0xbd0…E75B8” from BitGo at around 5:07 p.m.

BitMine has not officially confirmed this specific transaction. The company announced buying $200 million worth of ETH just days earlier.

BitMine currently holds 3,629,701 ETH worth approximately $10.9 billion. This represents around 3% of total Ethereum supply.

The company has stated its goal of accumulating 5% of total supply. BitMine Chair Tom Lee has expressed support for Ethereum on multiple occasions.

Technical Outlook

The daily chart shows Ethereum broke out of a falling wedge pattern. This pattern forms when price creates consecutive lower lows and lower highs within two converging descending trendlines.

A breakout from this pattern typically signals a potential shift from bearish to bullish. The $3,096 level marks the next key resistance, which is the 200-day moving average.

A move above this level could trigger a rally toward $3,600. This zone aligns with the 61.8% Fibonacci retracement level.

If Ethereum fails to hold $3,000 support, the price could drop to $2,750. This level aligns with the 38.2% Fibonacci retracement.

Tom Lee predicted ETH could trade between $7,000 and $9,000 by the end of January 2026. He said in a recent interview that ETH would bottom near $2,500 before rising.

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