Major Ethereum holders drive buying pressure toward 2,700 level

Following five months of steady decline, the ETHUSD pair surged 46.9% during May's 22 trading days, recovering 43.74% of those losses.

The daily Relative Strength Index (RSI) at 76 has been oscillating above and below overbought territory since May 9th, suggesting potential exhaustion of the bullish momentum. The 4-hour RSI at 58 continues to support buying pressure.

The daily Moving Average Convergence Divergence (MACD) remains deep in positive territory, indicating overall strong, though slightly weakening, buying momentum, as its histogram has dipped below the 9-day Simple Moving Average (SMA). The 4-hour MACD reaffirms the bullish impulse, having rebounded from a brief stint in negative territory back into a positive zone.

ETHUSD exchange reserves dropped to 18.73 million ETH by Wednesday, May 21, indicating sustained buying pressure in the futures market. This decline began on April 24, with over 1 million ETH withdrawn from exchanges to digital wallets for potential long-term holding. As a result, ETH exchange balances have reached their lowest level since August 2024.

According to Coinglass data, Ethereum's extreme volatility over the past 24 hours triggered $106.52 million in liquidations as positions fell below maintenance margin requirements. Long positions accounted for $56.2 million of the total, while short positions saw $50.32 million liquidated.

Ethereum needs high-volume momentum above the 2850 resistance level to establish its next trend direction. Meanwhile, long-term holders aim to solidify a sustained price movement above the 2500 support level.

Trading strategy option: buy ETHUSD at the current price. Take Profit at 2700. Stop Loss at 2570.