Crypto market weakness persists, but Ethereum metrics hint at rally to $3.3K

The broader cryptocurrency market continues to exhibit signs of fatigue, marked by low trading volume and Bitcoin (BTC) struggling to decisively break above the critical $72,000 resistance zone. This persistent weakness is largely attributable to ongoing macro uncertainty, particularly concerning Federal Reserve monetary policy and sticky inflation data, leading investors to favor risk-off positioning.

However, amidst this bearish sentiment, Ethereum (ETH) is showcasing distinct internal strength, suggesting a potential decoupling and a significant upward movement. Key on-chain metrics for Ethereum paint a decidedly bullish picture. Data reveals that the supply of ETH held on centralized exchanges has reached multi-year lows, a strong indicator that long-term holders are moving assets into cold storage or staking protocols, significantly reducing immediate selling pressure.

Furthermore, the percentage of staked ETH continues its steady rise, demonstrating profound conviction in the network’s long-term utility and deflationary mechanism. Technically, ETH has been consolidating within a tight range near the $3,000 psychological mark. A decisive breakout fueled by increased whale activity and decreasing exchange reserves could easily propel the price past immediate resistance levels, setting a clear trajectory toward the $3,300 mark. This level represents a key Fibonacci resistance cluster and could serve as the catalyst for broader altcoin market relief.

Source: Crypto market weakness persists, but Ethereum metrics hint at rally to $3.3K