Ether price targets $3K as ETH balances on exchanges hit record low.

Ethereum’s on-chain movements suggest that there is a bullish pressure building around Ether, as its exchange balances have reached an all-time low and staking deposits continue to surge. Technical charts for Ether indicate that the asset can reach $3,000 if buyers can push above the resistance between $1,900 and $2,000.

According to Glassnode data, exchange balances for ETH have reached a new low of 12.6%, dropping sharply in the last 30 days. Reduced supply on exchanges is usually a bullish sign, as it means there are fewer tokens readily available for selling. The netflow volume of deposits and withdrawals from exchanges shows a steep surge in withdrawals at the start of June, amid a regulatory crackdown on Binance and Coinbase.

Glassnode’s data shows that nearly 30% of ETH’s supply is locked in smart contracts, including decentralized finance and staking contracts, up from 25.5% at the start of 2023. Increased withdrawals from exchanges and deposits in smart contracts reduce ETH’s liquid supply, which is positive for ETH’s price.

Ether’s price broke above the 50-day moving average at $1,823.09, staging a bullish breakout. The ETH/USD pair is currently facing resistance around the horizontal level of $1,906, with the $1,900-$2,000 level acting as technical and psychological resistance levels, according to the ascending triangle pattern. A breakout above $2,000 could quickly propel ETH towards the 2022 breakdown levels of around $3,000.

The funding rate for the ETH perpetual swap contract surged toward monthly highs, acting as a cautionary flag for late buyers. Perpetual swap traders pay funding rates on their open short or long positions, depending on the demand for the asset. When the demand for short orders surpasses the demand for long orders, shorting becomes relatively more expensive, leading traders on the short side to pay longs.

Despite this, movements on the blockchain and market indicators suggest that there is a greater chance of the price increasing in the short to medium term, rather than a bearish trend.

The price of Bitcoin and whether buyers can keep it above $30,000 will be important in maintaining the positive momentum of Ether.