Ethereum’s Recent Movements

Ethereum saw significant activities with transactions on Coinbase Prime and staking at Lido by President Trump’s World Liberty Finance (WLFi) operations. Over the last week, there was a steady inflow of ETH, culminating in large transfers totaling approximately $260 million.

WLFi Making Big Moves

Recent transactions highlighted a direct transfer of $200 million worth of Ethereum to Coinbase Prime. Additionally, $60 million in Ethereum has been staked with Lido, indicating a strategic diversification and asset security within blockchain finance.

Ethereum holdings rose from 500 ETH to over 2,000 ETH in a few days, with significant inflows coinciding with these large transfers. This substantial investment in ETH could signal a bullish outlook on crypto by entities linked to President Trump.

However, concentrating assets on specific platforms may expose these holdings to risks related to centralized exchanges and staking pools, including regulatory scrutiny and operational vulnerabilities. Such large ETH movements reflect confidence in the asset’s long-term value, anticipating higher returns from staking yields and price appreciation.

Ethereum Exchange Reserves

Ethereum Exchange Reserves revealed a significant trend: reserves have dropped to their lowest levels since January 2024, decreasing to 18,713,060 ETH. This decline correlated with a downward price trajectory, with ETH’s price sliding to $2,441.57. The depletion of reserves often indicates fewer ETH available for trading, potentially reducing selling pressure and setting the stage for price increases if demand exceeds supply.

Conversely, reduced reserves could heighten price volatility; fewer ETH available on exchanges might lead to pronounced price swings in response to large buy or sell orders. Negative market sentiment or significant sell-offs could worsen price declines due to decreased liquidity.

Stochastic RSI on Ethereum Price Action

Ethereum exhibited a clear rising wedge pattern, currently suggesting a potential rally as the Stochastic RSI indicates that ETH is oversold. This setup on the weekly timeframe emphasized the reliability of the signal for an impending uptrend.

Ethereum’s trading price is just below a significant resistance level, which, if surpassed, could trigger a substantial increase. The traditionally bearish rising wedge pattern contrasts with the optimistic signal from the Stochastic RSI, which has historically preceded a rally.

If ETH breaks through the upper boundary of the wedge near $3,600, a strong bullish reaction could occur. Conversely, failing to break resistance might lead to a price correction, aligning with the traditional interpretation of this pattern, potentially moving prices toward lower support levels near $2,100. A successful breach could see Ethereum test previous highs around $6,800, while failure to overcome resistance might reinforce bearish sentiments, pressuring the asset back to lower supports.