In the past week, Ethereum experienced significant price declines, leading to the closing of the CME gap and altering market expectations.
CME Gap Closed After Market Decline
Ethereum extended its decline this week, with heavy liquidations hitting long positions as the price dropped from above $4,600 to near $4,000. This move completed the closure of the CME futures gap between $4,050 and $4,100, a level closely monitored by traders. As of writing, ETH traded around $4,200, down 1% in 24 hours and 9% in the past week. Analyst CW commented that long positions on $ETH have been destroyed, and the CME gap has been filled. "Now the next target will be the short position."
Long-Term Breakout on Monthly Chart
Analyst Merlijn The Trader highlighted a major breakout on the monthly timeframe. ETH has moved above a four-year descending resistance line and formed a MACD golden cross. He stated: "This isn’t noise. This is liftoff. Next stop: $10,000 Ethereum." The breakout ends years of repeated rejections at the same trendline, viewed by many analysts as a sign of shifting long-term momentum in favor of buyers.
Exchange Supply at Multi-Year Lows
Analyst Cas Abbé pointed to exchange data showing a sharp drop in available ETH. He noted: "$ETH supply on CEX has now dropped to a nine-year low. Big money is buying loads of ETH and then taking it off from the exchanges." According to Abbé, exchange balances are now comparable to levels last seen when ETH traded at $30. He added: "This seems like an even bigger supply crunch than BTC, and it has not been fully priced yet."
With the CME gap closed, bullish long-term breakout patterns, and decreasing exchange supply, Ethereum's market situation is closely monitored for potential signs of future rallies.
