Ethereum Price at Key Turning Point: $2000 Support Decides Future Direction

Recent on-chain data reveals a sustained decrease in the circulating supply of Ethereum (ETH) on exchanges, reaching multi-year lows with a significant drop. Concurrently, ETH holdings in corporate reserves have surged from zero a year ago to 7.4 million coins, representing approximately 6.6% of the total circulating supply. This shift signifies a transition of institutional investors from a wait-and-see approach to long-term allocation, gradually driving market sentiment from speculation to fundamentals.

Notably, the number of wallet addresses holding ETH for over 155 days has recently surged by over 3500%, superficially indicating a strong bullish signal. However, deeper analysis reveals that the majority of new holdings are concentrated in the $2340 to $3350 range. With the current price below the cost basis, these purchases are more likely "cost averaging" rather than steadfast bullish entries. This type of "survival buying" is difficult to distinguish from "strategic buying" on charts, requiring cautious interpretation. From a technical perspective, veteran trader Merlijn The Trader points out that Ethereum's daily stochastic RSI has turned downward from the overbought zone. Its pattern is highly similar to the previous ETH plunge from $3400 to $1800, a 47% drop. While not necessarily foreshadowing a crash, the recurrence of this technical structure cannot be ignored. If the price breaches the key $2000 support, $1600 could become the next target. The current price is oscillating around $2055, closely adhering to the 50-period moving average at $2021. The RSI remains in the neutral zone at 57, and the MACD has just turned into a bullish signal. Overall, the market is showing a state of consolidation and accumulation rather than a prelude to a strong breakout. The market seems to be awaiting a catalyst for a clear direction.

Meanwhile, Ethereum's underlying applications are quietly changing the real world. The United Nations is exploring the use of blockchain technology to bypass traditional banking systems and directly distribute humanitarian aid to recipient regions, enhancing transparency and efficiency. The expansion of such practical application scenarios is providing an increasingly solid social foundation for the value of ETH.