Ethereum Price Bottom Signaled by Falling Exchange Reserves
Ethereum (ETH) has been trading at discounted prices since February, and despite a recent rally to $1,920, sellers still hold the upper hand in the market.
A report from AMBCrypto suggests that if the 2022 bear market cycle plays out once more, a price drop to $1.15k is possible.
However, some on-chain metrics indicate organic growth and reduced speculative froth. For instance, Exchange Reserves have fallen from 5 million ETH in mid-2025 to 3.8 million at the time of writing, signaling accumulation from holders and easing selling pressure.
CryptoQuant data also shows that the market price is below the realized price, setting up favorable conditions for long-term investors to buy Ethereum on the cheap.
In a more positive note, crypto analyst Crypto Onchain observed that median transaction fees have been quiet over the past quarter but rose by 16% in the last week. New smart contract deployment surged 190% compared to the 90-day baseline, and median tip fees increased by 86%, indicating genuine short-term on-chain demand.