Ethereum (ETH) opened the week trading below $2,200 as declining exchange supply hits a multi-year low, setting up a potential supply squeeze if demand returns.
ETH Technical Resistance
On the daily chart, ETH remains trapped inside a descending channel. The 100-day moving average near $2,400 and the 200-day moving average around $2,900 are both declining, forming a strong resistance ceiling overhead.
Every push toward the $2,400 supply zone has been met with selling pressure.
Still, the RSI has been quietly climbing since February's capitulation and now sits in the mid-to-high 50s — a momentum divergence that can precede breakout attempts.
On the four-hour timeframe, the token has been tracking a mildly ascending trendline from the February lows, with support near $2,000. A clean break above $2,400, ideally with RSI holding above 60, would mark the most constructive short-term signal in months.
Meanwhile, the exchange supply ratio has fallen to 0.126, a multi-year low. That figure dropped steeply from a mid-2025 peak near 0.18, meaning structurally less ETH is available for sale on exchanges.
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Price Swings
The $1,800 support band remains critical. A break below that level would expose ETH to $1,600 and $1,500 in relatively short order.
ETH has struggled to sustain any meaningful rally since February. The recovery from those lows has been shallow, with the token repeatedly failing at the $2,400 resistance zone. Macro uncertainty continues to weigh on broader risk appetite, keeping buyers cautious.
The range between $1,800 and $2,400 has defined ETH's trading corridor for weeks. Until the token breaks convincingly above $2,400 or loses $1,800, price action is likely to remain choppy and directionless.