After breaking a multi-month downtrend line, Ethereum is approaching the $2,000 psychological resistance level. According to an analyst, this is a critical zone for the digital currency, which could decide if the coin hits a 5-digit value or falls to $1,000. With ETH in a critical area, the whales have gone into a buying spree.
ETH breaks out of multi-month downtrend
ETH has been making immense progress through the past few days. The chart below shows that the coin has broken above a multi-month trendline with a bullish rally, which is still ongoing for nearly 3 weeks. With this momentum not only did ETH break above the multi-month downtrend line, but it also crossed above the 50-day moving average, which is an important indicator that traders look for.
Moreover, when the strength of the current rally is measured, the relative strength index (RSI) shows that there is force and momentum behind this rally. The RSI making higher highs and higher lows above the average (simple moving average) shows the bulls are pushing hard.
ETH’s $2,400 level may determine a $10K rally or $1K drop
As the bulls keep pushing ETH higher and the prices closer to $2,000, an analyst stated that ETH was nearing a critical zone. It is a zone that has the ability to make or break the current uptrend.
Analyst Crypto Patel stated that the ETH, which is currently priced at $1,935, may extend its recovering phase to as high as $2,400. Once it reaches this level, given that the bullish scenario still prevails, ETH may reach values from $7,000 to $10,000. In contrast, a drop below this level ($2,400) may see the prices back in the price zone between $1,000 and $1,500.
ETH whales tank exchange reserves
As ETH resides in a decisive zone, the whales have gone into a buying spree. In particular, one dormant whale spent $20 million in USDC to acquire 10,501 ETH after three months of inactivity.
As whale activity takes over, the ETH available on exchange reserves has started to tank. According to an analyst, almost a million ETH—worth approximately $2 billion—have been withdrawn since June 20, 2026.
Whale activity has accelerated as large Ethereum holders continue accumulating ETH, while exchange reserves have fallen sharply. This combination is widely viewed as a bullish on-chain signal because it suggests that investors are moving ETH off trading platforms and into private wallets or long-term custody rather than keeping it available for sale. Lower exchange reserves reduce the liquid supply available for immediate sale, which could create a supply squeeze if demand continues to rise.
If buying pressure continues while the tradable supply of ETH remains constrained, the imbalance between supply and demand could support stronger price appreciation and increase the likelihood of sustained upward momentum.
